NRG Yield unit plans USD-400m notes sale to back Alta Wind deal
Jul 28, 2014 - US firm NRG Yield Inc (NYSE:NYLD) said today a unit plans to offer USD 400 million (EUR 297.7m) worth of senior notes to help finance its pending takeover of the operational 947-MW Alta Wind Energy Centre in California.
The power plants operator will be selling senior unsecured obligations of NRG Yield Operating LLC due 2024 to qualified institutional buyers. The company noted that this offering is not conditioned upon the completion of the Alta Wind transaction.
Aside from the funds this notes offering provides it with, NRG Yield will also use available cash and the USD 567 million in proceeds from a planned common stock sale for the acquisition.
Alta Wind, which is touted as the largest wind facility in North America, is 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 USD-870-million acquisition of the wind farm complex will expand the combined wind portfolio owned by NRG Yield and its parent NRG Energy Inc (NYSE:NRG) to 2,839 MW.