SunEdison sells distributed solar facilities to TerraForm Power

BELMONT, Calif. and BETHESDA, Md., Jan. 7, 2015 /PRNewswire/ — SunEdison, Inc. (NYSE: SUNE), the world’s largest renewable energy development company, and TerraForm Power, Inc. (Nasdaq: TERP), a global owner and operator of clean energy power plants, today announced that TerraForm has acquired 21 U.S. distributed generation (DG) solar power plants comprising 26 MW from SunEdison through a series of transactions valued at $47 million.

The 21 power plants have long-term contracts with an average remaining life of 20 years. The portfolio has high quality counterparties including municipalities, schools and businesses and is geographically diverse, with plants located in seven US states. These assets are expected to increase annual CAFD by approximately $5 million on an unlevered basis.

TerraForm has funded the purchase of these call right projects with cash on hand.

These distributed generation drop downs advance TerraForm’s strategy of transforming how energy is generated, distributed and owned.  DG projects are inherently “win-win” for customers, asset owners, and investors. By providing clean electricity directly to end users, customers save on energy, while TerraForm benefits in the form of attractive project returns.

“This transaction furthers TerraForm’s leadership in the DG market segment – which is one of the most profitable and fastest growing clean energy market segments,” said Carlos Domenech, President and Chief Executive Officer of TerraForm. “In addition, DG is a flow business that delivers consistent growth for our shareholders.”

“We are pleased to announce that together with TerraForm, we have exceeded our goals for the projected 2014 drop downs,” saidBrian Wuebbels, Chief Financial Officer at SunEdison. “This accomplishment speaks to the strength of the relationship between TerraForm and SunEdison, and our ability to deliver on shareholder commitments by working together to leverage SunEdison’s pipeline and expertise in developing, building and financing projects. The sale of these assets generates immediate value for SunEdison by generating cash, and recurring value through SunEdison’s ownership of TerraForm.”

Acquisition Highlights:

  • $47 million in cash consideration
  • $24 million of tax equity financing secured from Barclays, Citi, and JPM Capital
  • >10% unlevered cash-on-cash equity return

About TerraForm

TerraForm is a renewable energy leader that is changing how energy is generated, distributed and owned. TerraForm creates value for its investors by owning and operating clean energy power plants. For more information about TerraForm, 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, India and Asia. SunEdison’s common stock is listed on the New York Stock Exchange under the symbol “SUNE.” To learn more visit www.sunedison.com.