Oct 10 2014
TerraForm Power Inc., a global owner and operator of renewable energy power plants, today announced that it will acquire the operating portfolio of Hudson Energy Solar Corporation, a solar project developer that owns and operates solar assets for schools, school districts, and commercial and industrial customers. Hudson Energy Solar is a subsidiary of Just Energy Group, Inc., one of the largest competitive green energy retailers in North America, with over 4.7 million customers.
TerraForm Power is partnering with SunEdison, Inc. (NYSE:SUNE), a leading global solar technology manufacturer and provider of solar energy services, to purchase the company, which will be split between them. The 101 projects comprising Hudson's operating portfolio of approximately 25.5 MWp will go to TerraForm Power while its 4.5 MWp development pipeline will be acquired by SunEdison and added to TerraForm Power's call right project list. Just Energy Group will also provide TerraForm Power with a right-of-first-offer agreement to acquire new operating solar projects built for Just Energy's commercial and industrial customers in four states: New Jersey, New York, Massachusetts and Pennsylvania.
"This acquisition demonstrates TerraForm Power's ability to execute our growth strategy and acquire third-party commercial and industrial projects in the U.S.," said Carlos Domenech, chief executive officer and president of TerraForm Power. "We believe this market will provide considerable value to us for the foreseeable future and the attractive economics of this transaction – an expected first-year cash-on-cash return of 14 percent – bear out that point of view."
TerraForm Power will provide upfront consideration of approximately $35 million to acquire the assets, including cash consideration to Just Energy Group and debt repayment; approximately $21 million of project level debt will be assumed with the portfolio. The transaction is expected to provide TerraForm Power with approximately $5.1 million in cash available for distribution (CAFD) in 2015 and is expected to close early in the fourth quarter of 2014.
About TerraForm Power
TerraForm Power (Nasdaq:TERP) is a renewable energy leader that is changing how energy is generated, distributed and owned. TerraForm Power creates value for its investors by owning and operating renewable energy power plants. For more information about TerraForm Power, please visit: http://www.terraform.com.
About SunEdison
SunEdison is a global leader in transforming how energy is generated, distributed and owned. SunEdison manufactures solar technology and develops, finances, installs and operates distributed solar power plants, delivering predictably priced electricity and services to its residential, commercial, government and utility customers. SunEdison also provides 24/7 asset management, monitoring and reporting services for hundreds of solar systems worldwide via the company's Renewable Operation Center (ROC). SunEdison has offices in North America, Europe, Latin America, Africa and Asia. SunEdison's common stock is listed on the New York Stock Exchange under the symbol "SUNE."