A unit of SunEdison Inc. - TerraForm Power has agreed to buy 930 MW (megawatts) of wind farms in the US, and Canada from Invenergy Wind LLC, with a transaction valued at $2 billion. The company is ready to purchase a majority stake in a portfolio of wind farms.
TerraForm that was established a year ago by a spinoff of SunEdison Inc.'s clean-power assets anticipates to acquiring net ownership of 460 MW of wind power plants. An additional 470 MW of wind power plants will be gained by a warehouse facility, which will be sponsored by SunEdison and third-party equity investors, with the assets being dropped down to TerraForm later.
The assets in the deals, anticipated that would shut in the final quarter, incorporate seven contracted wind farms and represent to around one-tenth of Invenergy's total contracted portfolio. Invenergy will hold a 9.9 per cent stake in the US assets and will provide certain operation and maintenance services for those power plants.
Invenergy Chief Financial Officer Jim Murphy asserted in a press release Monday that market enthusiasm for these wind projects were strong, highlighting the quality of these renewable energy assets, all of which have long-term power deal contracts.
SunEdison and other renewable-energy engineers, for example, NextEra Energy Inc. and, NRG Energy Inc. have spun off groups of power plants, solar farms and wind ranches into new companies, like, TerraForm, which sell power to utilities or different organizations under long-term contracts, and pay regular dividends to shareholders.
Market Update: TerraForm shares climbed 3.5 per cent to $38.86 in recent after-hours trading, while SunEdison raised 3.8 per cent to $30.05. TerraForm additionally raised its 2016 per-share dividend target by 11 per cent to $1.70 from its past direction for $1.53.