Terra Nova Renewable Partners, the strategic equity partnership between SunEdison and institutional investors advised by J.P. Morgan Asset Management – Global Real Assets, is acquiring 333 MW of wind power plants from SunEdison for $209 million.
The two acquired projects are the 185 MW Bingham wind farm and 148 MW Oakfield wind farm, both located in Maine. Construction on Oakfield Wind was completed this fall and is now operating as the largest wind project in New England. The Oakfield project's tax equity was funded, and the construction loan was converted to a term loan.
The strategic partnership was first announced in September. Under the partnership commitment, J.P. Morgan's clients are expected to provide equity to purchase renewable energy projects developed or purchased by SunEdison. Remaining project costs are expected to be funded with traditional, non-recourse commercial bank debt and tax equity.
Proceeds from this transaction provide SunEdison with an upfront development margin. SunEdison has the right to repurchase the projects from the partnership for a period of five years and will grant TerraForm Power Inc. call rights to the projects should they be repurchased. Any projects not repurchased by SunEdison would continue to be owned by the partnership.
KeyBanc Capital Markets served as an advisor to SunEdison. CohnReznick Capital Markets served as financial advisor, and Milbank, Tweed, Hadley & McCloy LLP served as legal advisor to J.P. Morgan Asset Management.
‘This transaction represents good value for SunEdison's shareholders and enhances our financial strength and flexibility,’ comments Brian Wuebbels, SunEdison's chief financial officer. ‘Terra Nova's purchase is representative of the strong demand we've seen for ownership of SunEdison's attractive renewable energy assets.’