NRG Yield to take control of 814-MW wind portfolio in 4th drop-down
Wind farm in USA. Author: Brian Jeffery Beggerly. License: Creative Commons. Attribution-2.0 Generic
US clean energy yieldco NRG Yield Inc (NYSE:NYLD) has agreed to acquire 75% of the equity interests in a 814-MW wind portfolio from utility NRG Energy (NYSE:NRG).
NRG Yield will take equity interests in 12 wind farms, of which the 161-MW Wildorado, 150-MW Goat Wind and 122-MW Elbow Creek facilities in Texas are the largest ones. NRG Energy took possession of these assets through its USD-2.64-billion (EUR 2.31bn) takeover of Edison Mission Energy (EME) that was completed in the spring of 2014.
Under the terms of the deal, NRG Yield will pay USD 210 million in cash and will assume some USD 145 million in project debt. The agreement also covers tax equity of about USD 97 million.
The transaction is seen to close in the final quarter of the year. NRG Yield expects the targeted assets to deliver roughly USD 41 million of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) and USD 21 million of cash available for distribution (CAFD) on a run-rate basis.
The company also reiterated its forecast for the third quarter and full year 2015.