Renewable Energy, Wind

SunEdison, TerraForm Power close acquisition of First Wind

Renewable energy developer SunEdison and TerraForm Power completed their previously announced acquisition of First Wind Holdings, LLC.

In the transaction, TerraForm Power purchased 500 MW of operating wind power plants and 21 MW of operating solar power plants from First Wind. The portfolio has an average counterparty credit rating of A- and brings the weighted average remaining PPA life to 16 years for the entire TerraForm fleet.

The portfolio is expected to add $73 million of cash available for distribution in 2015. TerraForm Power reiterates its 2015 guidance of $214 million of CAFD and dividends of $1.30 per share.

SunEdison purchased the equity interests of First Wind and certain of its subsidiaries, thereby acquiring a leading wind development and asset management platform. The acquisition provides SunEdison with an additional 8 GW of development-stage projects, of which 1.0 GW consists of PTC-eligible wind project pipeline and backlog, and 0.6 GW of solar project pipeline and backlog.

Since the acquisition announcement, SunEdison has secured wind turbines that increase the number of PTC-eligible wind projects from 1.0 GW to 2.6 GW.

At the time of the acquisition announcement, SunEdison raised its 2015 installation guidance by 29 percent to 2.1-2.3 GW, and raised its 2016 installation outlook to 2.8-3.0 GW. The visibility provided by First Wind’s 8 GW of projects will continue to drive the growth of both SunEdison and TerraForm.