Brookfield Renewable Closes TerraForm Power Transaction
2,600 MW Diversified Renewable Power Portfolio to Deliver Immediate Value to Brookfield Renewable Shareholders
All amounts in U.S. dollars unless otherwise stated
• Acquisition will add 2,600 MW of solar and wind
• Expected to contribute approximately $40 million of FFO annually to Brookfield Renewable, delivering immediate value to our shareholders
• 15-year utility grade PPAs supporting revenues
• Post funding, Brookfield Renewable will have over $1.5 billion of liquidity
BROOKFIELD, News, Oct. 16, 2017 — Brookfield Renewable Partners L.P. (TSX:BEP.UN) (NYSE:BEP) (“Brookfield Renewable”) today announced that, together with its institutional partners, it has closed the previously-announced acquisition of a 51% interest in TerraForm Power (NASDAQ:TERP) (“TERP”), a large scale, diversified portfolio of solar and wind assets located predominantly in the U.S., for a total commitment of $656 million.
Brookfield Renewable’s total commitment is $203 million, giving it an approximate 16% interest in TERP, funded through available liquidity. The transaction is immediately accretive to Brookfield Renewable shareholders, with TERP’s stable revenue streams expected to contribute 6% accretion to Brookfield Renewable FFO on a run-rate basis.
TERP represents Brookfield Renewable’s first meaningful investment into solar and distributed generation and provides a platform for further growth in these sectors.
“We are excited to complete the acquisition of this premier portfolio of solar and wind assets,” said Sachin Shah, CEO of Brookfield Renewable. “The TerraForm Power acquisition is an attractive entry-point for us into the quickly-expanding solar and distributed generation sectors, and its high quality revenue streams will deliver immediate accretion to our shareholders.”
The investment is expected to contribute approximately $40 million to Brookfield Renewable’s annual FFO. TERP’s cash flows are underpinned by long-term contracts with creditworthy off-takers and an average remaining PPA term of 15 years. The high quality assets in the portfolio have a long useful life remaining, consisting of recently constructed projects that have been operating for an average of four years.
TERP will remain a Nasdaq-listed public company under the new sponsorship of Brookfield Asset Management, and will be Brookfield’s primarily vehicle for acquisitions of operating solar and wind assets in North America and Western Europe.
Brookfield Renewable also continues to progress the related previously-announced acquisition of TerraForm Global
Brookfield Renewable Partners
Brookfield Renewable Partners operates one of the world’s largest publicly traded, pure-play renewable power platforms. Our portfolio consists of hydroelectric, wind, solar and storage facilities in North America, Colombia, Brazil, and Europe and totals over 13,500 megawatts of installed capacity. Brookfield Renewable is listed on the New York and Toronto stock exchanges.
Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a leading global alternative asset manager with more than US$250 billion of assets under management.
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