SunEdison (NYSE: SUNE) announced Dec. 10 that it has agreed to sell 333 MW of wind assets in Maine to Terra Nova Renewable Partners for $209 million.
Terra Nova Renewable Partners is the strategic equity partnership formed between SunEdison and institutional investors advised by J.P. Morgan Asset Management–Global Real Assets.
“This transaction represents good value for SunEdison’s shareholders and enhances our financial strength and flexibility,” said Brian Wuebbels, SunEdison’s chief financial officer. “Terra Nova’s purchase is representative of the strong demand we’ve seen for ownership of SunEdison’s attractive renewable energy assets.”
“These high-quality SunEdison projects with long-term contracted cash flows are the kind of infrastructure assets our investors are interested in holding,” said Matt LeBlanc, J.P. Morgan Asset Management–Global Real Assets’ chief investment officer of OECD Infrastructure. “This is a significant transaction and the first with SunEdison since we announced our strategic partnership, and we look forward to completing more in the future.”
The strategic partnership was announced in September 2015. Under the partnership, J.P. Morgan’s clients are expected to provide equity to purchase renewable energy projects developed or purchased by SunEdison. Remaining project costs are expected to be funded with traditional, non-recourse commercial bank debt and tax equity.
Proceeds from this transaction provide SunEdison with an upfront development margin. SunEdison has the right to repurchase the projects from the partnership for a period of five years, and will grant TerraForm Power Inc. (Nasdaq: TERP), a global owner and operator of clean energy power plants, call rights to the projects should they be repurchased. Any projects not repurchased by SunEdison would continue to be owned by the partnership.
The two acquired projects are the 185-MW Bingham wind farm and 148-MW Oakfield wind farm, both located in Maine. Construction on Oakfield Wind was completed this fall and it is now operating as the largest wind project in New England. The Oakfield project’s tax equity was funded and the construction loan was converted to a term loan. The projects are:
- Bingham, 185 MW, expected to be completed in 2016, offtakers are Eversource, National Grid, Unitil; and
- Oakfield, 148 MW, operating, offtakers are also Eversource, National Grid, Unitil.
SunEdison develops, finances, installs, owns and operates renewable power plants, delivering predictably priced electricity to its residential, commercial, government and utility customers. SunEdison is one of the world’s largest renewable energy asset managers and provides customers with asset management, operations and maintenance, monitoring and reporting services. Corporate headquarters are in the United States with additional offices and technology manufacturing around the world.
J.P. Morgan Asset Management–Global Real Assets has more than $87 billion in assets under management and more than 400 professionals in the U.S., Europe and Asia Pacific, as of September 30, 2015. Its broad capabilities provide many of the world’s most sophisticated investors with a global platform of real estate, infrastructure and transportation strategies driven by local investment talent with disciplined investment processes consistently implemented across asset types and regions.