TerraForm Power has signed a definitive agreement to acquire net ownership of 930 MW of wind power plants from Invenergy Wind. The acquisition leverages SunEdison’s wind portfolio, which began with its acquisition of First Wind in January 2015.
TerraForm intends to acquire net ownership of 460 MW of the wind power plants from Invenergy with the remaining 470 MW to be acquired by a new warehouse facility to be sponsored by SunEdison and third party equity investors, for a combined $2 billion in aggregate consideration.
The acquired portfolio comprises seven contracted wind farms located in the United States and Canada. The assets have a weighted average remaining contract life of 19 years and an average counterparty credit rating of AA.
Invenergy will retain a 9.9 percent stake in the US assets and will provide certain operation and maintenance services for these power plants.
The continuing partnership with Invenergy is expected to provide significant opportunities for future collaboration and growth. Invenergy’s portfolio of clean power projects includes operating facilities totaling approximately 6.6 GW, with another 2.5 GW under construction or contract. This transaction represents the transfer of approximately one-tenth of Invenergy’s total contracted portfolio.
The companies anticipate closing by the fourth quarter of 2015.
TerraForm, an indirect subsidiary of SunEdison, owns and operates clean power generation assets that have been acquired from SunEdison.