TerraForm to buy Hudson Energy's 25.5-MWp operating solar portfolio

Oct 9, 2014 - TerraForm Power Inc (NASDAQ:TERP), the yieldco unit of US-based SunEdison Inc (NYSE:SUNE), said yesterday it will acquire the 25.5-MWp operating solar portfolio of Hudson Energy Solar Corp.

More specifically, solar company SunEdison and TerraForm will jointly take over Hudson Energy from its parent Just Energy Group Inc (NYSE:JE) and will split the business between them. The target’s portfolio of 101 operating plants will be added to TerraForm’s assets, while its development pipeline of 4.5 MWp will be acquired by SunEdison and then added to the yieldco vehicle's call right project list. TerraForm will make an upfront payment of USD 35 million (EUR 27.4m) for the assets and will also assume some USD 21 million worth of project-level debt.

Following the deal, TerraForm expects to end up with about USD 5.1 million in cash available for distribution (CAFD) in 2015. As part of the transaction, seen to be completed early in the October-December quarter, renewable energy plants operator TerraForm will receive a right-of-first-offer agreement to buy new solar parks installed for Just Energy's clients in the states of New Jersey, New York, Massachusetts and Pennsylvania.

Recently-listed TerraForm has an initial portfolio including solar projects in the US, Canada, the UK and Chile totalling 808 MW. This includes 189 MW of projects under construction as of July 23 when TerraForm raised about USD 534 million from its initial public offering (IPO).

(USD 1.0 = EUR 0.783)

Choose your newsletter by Renewables Now. Join for free!