TerraForm Power Announces Acquisition of 23 MW of Solar Power Plants From Integrys
- 48 distributed generation solar power plants in
the United States
with expected average levered Cash Available for Distribution ("CAFD") of $5 million annually over the next 10 years
- Remaining average contract duration of 15 years, average counterparty credit rating of Baa2
- Expected levered cash-on-cash return in excess of 9%
BETHESDA, Md.
,
June 4, 2015
(GLOBE NEWSWIRE) --
TerraForm Power, Inc.
(Nasdaq:TERP), an owner and operator of clean energy power plants, today announced the acquisition of 23 MW of operating distributed solar power plants from a wholly owned subsidiary of
Integrys Energy Group, Inc.
, a leading energy holding company focused on regulated energy delivery in
the United States
. The full nameplate capacity on these 48 projects is 34 MW, with
TerraForm Power's
net ownership position representing 23 MW.
The solar projects are located throughout
Arizona
,
California
,
Connecticut
,
Massachusetts
,
New Jersey
and
Pennsylvania
. The assets were placed into operation between 2008 and 2013, and are contracted under long term power purchase agreements (PPAs) with a variety of commercial and municipal entities having a weighted-average credit rating of Baa2. The contracts have a weighted average remaining life of 15 years.
These plants are expected to generate average levered CAFD of approximately
$5 million
annually over the next 10 years. The equity consideration to be paid for the acquisition is
$45 million
. In addition,
TerraForm Power
will assume
$10 million
in project debt. This represents an expected levered cash-on-cash return of greater than 9%. TerraForm closed the acquisition on
June 3, 2015
utilizing existing balance sheet liquidity.
"We are grateful for the opportunity to work with Integrys, one of the country's leading utilities. This acquisition demonstrates TerraForm's continued leadership in the distributed generation segment and depth of utility relationships which continue to accelerate our growth trajectory," said Alex Hernandez, Chief Financial Officer of
TerraForm Power
.
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. For more information about
TerraForm Power
, please visit: http://www.terraform.com.
Safe Harbor Disclosure
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including with respect to the expected annual levered CAFD and the expected cash-on-cash return to be generated, expected funding, future growth and financial performance, and typically can be identified by the use of words such as "expect," "estimate," "anticipate," "forecast," "intend," "project," "target," "plan," "believe" and similar terms and expressions. Forward-looking statements are based on current expectations and assumptions. Although
TerraForm Power
believes that its expectations and assumptions are reasonable, it can give no assurance that these expectations and assumptions will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, among others: the failure of counterparties to fulfill their obligations under offtake agreements; price fluctuations, termination provisions and buyout provisions in offtake agreements; delays or unexpected costs during the completion of projects under construction;
TerraForm Power's
ability to successfully identify, evaluate and consummate acquisitions from
SunEdison
or third parties or changes in expected timing of any acquisitions; government regulation; operating and financial restrictions under agreements governing indebtedness;
TerraForm Power's
ability to borrow additional funds and access capital markets;
TerraForm Power's
ability to compete against traditional and renewable energy companies;
TerraForm Power's
ability to integrate acquired power plants, including the solar power plants acquired from Integrys; and hazards customary to the power production industry and power generation operations, such as unusual weather conditions and outages. Furthermore, any dividends are subject to available capital, market conditions and compliance with associated laws and regulations.
TerraForm Power
undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Expected annual levered CAFD and cash-on-cash return are estimates as of today's date,
June 4, 2015
, and are based on assumptions believed to be reasonable as of this date.
TerraForm Power
expressly disclaims any current intention to update such guidance. The foregoing review of factors that could cause
TerraForm Power's
actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect
TerraForm Power's
future results included in
TerraForm Power's
filings with the
Securities and Exchange Commission
("SEC") at www.sec.gov. In addition,
TerraForm Power
makes available free of charge at www.terraform.com copies of materials it files with, or furnishes to, the
SEC
.
Cash Available for Distribution (CAFD)
CAFD is a supplemental non-GAAP measure of
TerraForm Power's
ability to earn and distribute cash to investors. This measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance, including net income, net cash provided by (used in) operating activities or any other liquidity measure determined in accordance with GAAP, nor is it indicative of funds available to fund our cash needs.
CONTACT: Media:
Anne Granfield
Finsbury for TerraForm Poweranne.granfield@finsbury.com
+1 (646) 805-2033
Investors/Analysts:
Brett Priorbprior@terraform.com
+1 (650) 889-8628
TerraForm Power, Inc.