NRG Yield concludes purchase of 947-MW Alta Wind complex
Aug 13, 2014 - US power plants operator NRG Yield Inc (NYSE:NYLD) said Tuesday it has finalised the USD-870-million (EUR-651m) buy of the 947-MW Alta Wind Energy Centre in California, and also upgraded some financial projections for 2014.
As part of the deal, the company will assume non-recourse project financings of USD 1.6 billion. It also acquired a portfolio of land leases associated with the wind farm complex.
Now that the acquisition has been completed, NRG Yield lifted its guidance for 2014 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to USD 455 million from USD 410 million previously. Cash available for distribution (CAFD) is also expected to be higher at USD 145 million, as compared to USD 140 million forecast earlier.
NRG Yield, a unit of NRG Energy Inc (NYSE:NRG), still expects the Alta Wind power complex’s purchase to add USD 220 million to its annual run-rate adjusted EBITDA in 2016. The acquisition is also seen to boost CAFD in that same year by some USD 70 million, before debt service associated with acquisition financing.
Alta Wind, touted as the largest wind facility in North America, was previously owned by US green energy firm Terra-Gen Power LLC, an affiliate of private equity firms Global Infrastructure Partners and ArcLight Capital Partners LLC. The acquisition of the wind farm complex will expand the combined wind portfolio owned by NRG Yield and parent NRG Energy Inc to 2,839 MW, they said previously.