MARYLAND HEIGHTS, Mo., and BETHESDA, Md—SunEdison, the world’s largest renewable energy development company, and TerraForm Power, an owner and operator of clean energy power plants, have announced the closing of the acquisition of Atlantic Power’s 521-megawatt portfolio of operating wind power plants.
Concurrent with the closing, SunEdison has formed its second warehouse facility, named TerraForm Private Warehouse, to hold the acquired operating assets from Atlantic Power for a maximum period of seven years. TerraForm Power has an exclusive call right over the warehoused operating assets, and expects to add them to the company’s portfolio over time beginning with drop downs in the second half of 2016.
TerraForm Private Warehouse is US$525 million in aggregate size, with equity provided by leading infrastructure investors Macquarie Capital, John Hancock, and SunEdison. Morgan Stanley, Citi, and Goldman Sachs led the structuring of TerraForm Private Warehouse and provided debt in the form of a seven-year term loan.
The acquired wind power plants are located in Idaho and Oklahoma, and are contracted under long term power purchase agreements with investment grade utilities with a weighted-average credit rating of A3. The PPAs have a weighted-average remaining life of approximately 18 years. The portfolio is expected to generate average annual adjusted earnings of approximately $56 million over the next 10 years.
“We’re pleased to complete the closing of Atlantic Power’s operating assets utilizing TerraForm Private Warehouse, our new operating asset warehouse facility,” Brian Wuebbels, SunEdison chief financial officer said. “This warehouse is integral to securing the future growth of the SunEdison-TerraForm platform, and provides repeatable and scalable funding. Based on the success of our first and second warehouses, we anticipate adding additional warehouse vehicles to address future acquisition opportunities.”