TerraForm announces $515 million of financing for wind plants purchase

By Lisa Kerner

Charlotte, N.C., April 1 – TerraForm Power, Inc. said it secured up to $515 million of committed bridge financing to acquire five operating wind plants in Oklahoma and Idaho from Atlantic Power.

The company intends to fund the acquisition with a drop down warehouse facility in partnership with third-party equity investors and its sponsor SunEdison, according to a news release.

Equity consideration for the portfolio will be $350 million. The power plants have $165 million of project debt that TerraForm intends to retire and roughly $110 million proportional share of project debt that will remain outstanding.

The transaction is slated to close in the second quarter.

“We expect the warehouse facility to be an innovative financing structure that provides repeatable and scalable funding to secure future growth; we expect the drop down returns to be at parity with the acquisition yields,” said TerraForm chief executive officer Carlos Domenech.

TerraForm is a Bethesda, Md., company that owns and operates clean energy power plants.

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