Brookfield Renewable Increases Ownership Stake in Terraform Power

Source Press Release
Company Brookfield Infrastructure Partners L.P.TerraForm Power, Inc. 
Tags Corporate Deals, Deals, Renewable Energy, Power
Date June 11, 2018
  • Brookfield Renewable, together with its institutional partners, acquired an additional 61 million shares in TerraForm Power in a private placement
  • Proceeds will support the funding of TerraForm Power’s acquisition of Saeta Yield – a high-quality, 1,028 megawatt European solar and wind portfolio
  • Expected to be immediately accretive to unitholders, contributing approximately $80 million of incremental FFO annually to Brookfield Renewable
  • Post funding, Brookfield Renewable’s available liquidity remains robust at $1.4 billion

Brookfield Renewable Partners L.P. (TSX:BEP.UN) (NYSE:BEP) (“Brookfield Renewable”) today announced that, together with its institutional partners, they have acquired an additional 61 million shares of TerraForm Power (NASDAQ:TERP) through a private placement for a total consideration of $650 million, increasing their aggregate interest in TerraForm Power to 65% from 51% at a price of $10.66 per share of Class A common stock.   

Brookfield Renewable’s total commitment of $420 million increases its interest in TerraForm Power to 30%, which it will fund through available liquidity. This incremental investment is expected to be immediately accretive to Brookfield Renewable unitholders, contributing approximately $80 million to Brookfield Renewable’s FFO on a run-rate basis.

This investment increases Brookfield Renewable’s exposure to the rapidly growing solar and wind sectors through its higher ownership interest in TerraForm Power, and through TerraForm Power’s announced acquisition of Saeta Yield – a leading, 1,028 megawatt European solar and wind portfolio, which is expected to close on June 12, 2018. With this acquisition, we continue to advance TerraForm Power’s position as a leading owner and operator of solar and wind assets in developed markets around the world. 

“We have been extremely pleased with TerraForm Power’s performance to date as it makes excellent progress in advancing its business plan to enhance cash flows through organic growth and de-leveraging of its balance sheet,” said Sachin Shah, CEO of Brookfield Renewable. “Most importantly, within four months of our initial investment, TerraForm Power has created meaningful value for all investors as it continues to pursue high-quality solar and wind opportunities in Western Europe and North America.”  

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd