Suzlon has entered into a definitive agreement to sell the 240 MW Big Sky wind farm, located in Illinois, to EverPower Wind Holdings. The acquisition brings EverPower's total operational wind capacity in the U.S. to 752 MW.
The India-based turbine maker recently acquired the wind farm from bankrupt Edison Mission Energy (EME). As part of that deal, Suzlon agreed to forgive a $228 million loan it had made to EME to purchase the project's turbines. The wind farm, completed in 2011, features 114 of Suzlon's S88 machines.
Suzlon had already lined up the strategic sale to EverPower with the U.S. Federal Energy Regulatory Commission before closing the EME deal. Kirti Vagadia, Suzlon's head of finance, says in a statement, "This sale of Big Sky wind farm to a sound long-term investor like EverPower is an important part of our dis-investment strategy to hive off non-core assets, and the net proceeds of the sale will be used to fuel our business growth."
Financial details of the EverPower deal were not disclosed, but according to a Bloomberg report, Suzlon previously said it expected to earn less than half of the $228 million loan it had made to EME. The turbine maker is reportedly aiming to recover from a debt linked to a previous convertible bond default.