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NRG Yield, Inc. has completed its acquisition of the Alta Wind facility located in Tehachapi, California from Terra-Gen Power LLC for US$870 million, plus the assumption of US$1.6 billion of non-recourse project financings and subject to customary working capital adjustments. The acquisition, which totals 947 MW of operating wind capacity, also includes a portfolio of land leases associated with the Alta Wind facility.
“Completing this acquisition of North America’s largest wind facility not only showcases our ability to compete for and close deals for premier assets, it also underscores our commitment to carbon-free generation that will help accelerate the movement to a clean energy future,” said David Crane, NRG Yield’s Chairman and Chief Executive Officer. “We welcome Alta Wind to our portfolio of contracted assets that contribute to visible dividend growth for our investors while supporting our sustainability goals by providing clean electricity from wind generation for tens of thousands of American homes.”
Updating Financial Guidance from NRG Yield:
As a result of the completed acquisition, NRG Yield is raising its full-year 2014 Adjusted EBITDA guidance to US$455 million, from US$410 million, and Cash Available for Distribution (CAFD) guidance to US$145 million, from US$140 million.
The company is also reaffirming that the acquisition is expected by 2016 to increase both annual run-rate Adjusted EBITDA by approximately US$220 million and CAFD by approximately US$70 million (before debt service associated with acquisition financing).
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