NRG Energy’s subsidiary NRG Yield and Terra-Gen Power have signed an agreement whereby NRG Yield will acquire the Alta Wind facility located in Tehachapi, California, US.
Under the agreement, NRG Yield will acquire a total of 947MW of wind capacity as well as portfolio of land leases associated with the facility, for $870m as well as assumption of $1.6bn of non-recourse project financings and capital adjustments.
NRG Yield chairman and chief executive officer David Crane said Alta Wind marks a landmark investment for NRG Yield.
"The acquisition of the largest wind facility on the North American continent highlights not only our commitment to carbon-free generation, but also the strength of our acquisition capabilities to compete for contracted assets of world-class quality in the competitive marketplace," Crane added.
"Alta Wind contributes to our objective of sustainable and visible dividend growth for our investors while supporting the generation of carbon-free electricity for thousands of homes through large-scale wind."
NRG aims to fund the purchase through a mix of new debt, equity and cash.
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By GlobalDataSubject to customary working capital adjustments, the transaction is expected to be closed in the third quarter of 2014.
Alta Wind facility, which features 386 GE and Vestas turbines, has long-term power purchase agreements with Southern California Edison.
The deal is expected to add about $220m to NRG Yield’s annual run-rate earnings before interest, taxes, depreciation and amortization.
The acquisition increases the combined wind portfolio owned by NRG Yield and NRG Energy to 2,839MW.
Image: Alta Wind facility features 386 GE and Vestas turbines. Photo: Courtesy of dan/FreeDigitalPhotos.net.
