NRG Yield acquires 38-MW solar portfolio, gets offer to buy more
One of the company's existing sites in Freetown, Mass. (Photo: Business Wire)
US thermal and renewable power plants owner NRG Yield Inc (NYSE:NYLD.A) announced today it has closed a drop-down transaction with NRG Energy Inc (NYSE:NRG), acquiring a 38-MW solar portfolio.
At the same time, NRG Energy has offered to sell to the yieldco the 154-MW Buckthorn solar park near Fort Stockton, Texas, subject to negotiation and approval by NRG Yield's independent directors.
The already transferred 38-MW solar portfolio is primarily comprised of assets from NRG's Solar Power Partners (SPP) funds and other projects developed by the company. The yieldco has acquired the portfolio for a cash consideration of USD 71 million (EUR 60.9m) plus the assumption of about USD 26 million in non-recourse project debt. It financed the transaction with cash on hand.
The move is expected to increase Cash Available for Distribution (CAFD) on an average annual basis by around USD 8.8 million, starting in 2018.