Brookfield Renewable Partners and its institutional partners have acquired an additional of 14% in TerraForm Power for $650m, to raise its overall stake to 65%.
Brookfield Renewable’s total commitment of $420 million increases its interest in TerraForm Power to 30%, which it will fund through available liquidity.
This incremental investment is expected to be immediately accretive to Brookfield Renewable unitholders, contributing approximately $80 million to Brookfield Renewable’s FFO on a run-rate basis.
This investment increases Brookfield Renewable’s exposure to the rapidly growing solar and wind sectors through its higher ownership interest in TerraForm Power, and through TerraForm Power’s announced acquisition of Saeta Yield – a leading, 1,028 megawatt European solar and wind portfolio, which is expected to close on June 12, 2018.
With this acquisition, we continue to advance TerraForm Power’s position as a leading owner and operator of solar and wind assets in developed markets around the world.
Brookfield Renewable CEO Sachin Shah said: “We have been extremely pleased with TerraForm Power’s performance to date as it makes excellent progress in advancing its business plan to enhance cash flows through organic growth and de-leveraging of its balance sheet.
“Most importantly, within four months of our initial investment, TerraForm Power has created meaningful value for all investors as it continues to pursue high-quality solar and wind opportunities in Western Europe and North America.”
Source: Company Press Release