The announcement represents the closing of a purchase and sale agreement originally executed on June 30. A final closing for an additional 98 MW of projects is scheduled to be completed in early 2016.
Proceeds from the transaction will be reinvested in Invenergy's development pipeline; the total enterprise value is more than $2 billion. TerraForm says all the projects comprise GE turbines.
As part of the agreement, Invenergy is retaining an approximately 10% equity interest and will continue as the operations and maintenance provider for the U.S.-based projects: California Ridge, Bishop Hill, Prairie Breeze and Rattlesnake. Invenergy and other owners sold 100% interests in the Canadian project, Raleigh.
Brian Wuebbels, CEO of TerraForm Power, says the acquisition increases the company's fleet size from 1.9 GW to 2.8 GW.
‘On a pro forma basis, it extends our average remaining contract life from 16 years to 17 years. It improves the average counterparty credit rating from A- to A, and it increases our North America focus, with the U.S. and Canada now representing 83 percent of the total fleet – up from 75 percent at the end of the third quarter,’ explains Wuebbels.