NEW YORK --
Atlantic Power Corp. agreed to sell its wind farms to TerraForm Power
Inc. for $350 million, giving the company a cash injection after it
failed to find a buyer last year. The five operating wind farms in Idaho and Oklahoma
can produce as much as 521 megawatts of electricity and include
contracts to sell their output to utilities with an average life of 18
years, Beltsville, Maryland-based TerraForm said in a statement
Wednesday.
TerraForm went public last year and has been acquiring power projects from its parent, renewable-energy developer SunEdison Inc., and other sellers. Atlantic Power, owner of power plants in the U.S. and
Canada, said in September it had not found a buyer or merger partner
after conducting a strategic review of its options. The stock fell 22
percent last year, after declining 70 percent in the prior year.
“This transaction represents a compelling valuation
for our assets and will enhance our financial strength and flexibility,”
Atlantic Power Chief Executive Officer James J. Moore said in a
separate statement. The shares fell 1.4 percent to $2.77 at the close in
New York.
TerraForm expects the plants will generate adjusted
earnings before interest, taxes, depreciation and amortization of $56
million a year on average during the next decade. It will also assume
debt from the plants. TerraForm surged 4.7 percent to $38.23, a record
high. Boston-based Atlantic Power was advised by Goldman Sachs Group Inc. on the deal and Morgan Stanley advised TerraForm.
Copyright 2015 Bloomberg
http://www.renewableenergyworld.com/rea/news/article/2015/04/sunedisonterraform-signs-350-million-wind-farm-deal
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