TerraForm Power Acquires Sandringham and Woodville Solar …
The two projects are the Sandringham Solar Energy Center (13 MW), and the Woodville Solar Energy Center (12 MW), located in the province of Ontario, Canada. Both power plants have been operational since 2013. These solar plants have feed-in-tariff (FiT) contracts with the Aa2-rated Ontario Power Authority (now part of the Independent Electricity System Operator).
The contracts have an average remaining life of 18 years.
These plants are expected to generate annual unlevered CAFD of approximately $10 million over the next twelve months. This represents an expected unlevered cash-on-cash return of greater than 8%. TerraForm intends to fund the acquisition using existing balance sheet liquidity.
“We are grateful for the opportunity to work with Invenergy.
This acquisition marks our fifth external M&A transaction since our IPO just nine months ago, further demonstrating the strength and agility of the combined TerraForm-SunEdison platform,” said Carlos Domenech, Chief Executive Officer of TerraForm Power. “It also illustrates our ability to supplement the organic project drop downs from our sponsor, SunEdison, with high-quality third party project acquisitions.”
The transaction is expected to close in the second quarter of 2015, subject to regulatory approvals and customary closing conditions.
About TerraForm Power
TerraForm Power is a renewable energy leader that is changing how energy is generated, distributed and owned.
TerraForm Power creates value for its investors by owning and operating clean energy power plants.