Wind farm in Washington, USA. Author: Sam Churchill. License: Creative Commons. Attribution 2.0 Generic
Nov 6, 2014 - US power plants operator NRG Yield Inc (NYSE:NYLD) said yesterday it has signed a definitive agreement to buy 285 MW of wind power assets from its parent NRG Energy Inc (NYSE:NRG).
The targeted facilities will be purchased in an all-cash deal for USD 480 million (EUR 383.4m) that will also involve the purchase of a 500-MW natural gas plant in California. The transaction also includes the assumption of about USD 746 million of project debt, the buyer said.
The wind power capacity consists of the 19-MW Buffalo Bear and 130-MW Taloga farms in Oklahoma, the 55-MW Pinnacle facility in West Virginia and the 81-MW Laredo Ridge complex in Nebraska.
NRG Yield will finance the acquisition with available cash resources and funds under an existing credit facility. The firm noted it expects this deal to lift its annual run rate adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) by USD 120 million, while cash available for distribution (CAFD) is projected to rise by USD 35 million.
The transaction is subject to third party approvals and is seen to be completed by the end of 2014.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.