TerraForm Power buys 930MW wind power assets from Invenergy Wind for $2bn

SunEdison’s unit TerraForm Power has acquired a portfolio of 930MW wind farms from Invenergy Wind for $2bn.

The acquired portfolio includes seven farms located in US and Canada with weighted average remaining contract life of 19 years.

TerraForm Power said that the acquisition is expected to provide sizeable, high-quality contracted power plant portfolio to the TerraForm Power and other SunEdison family of companies.

TerraForm is planning to buy 460MW of plants directly from Invenergy which it will finance through a combination of cash on hand and new bond financing.

The remaining 470MW will be acquired by a new warehouse facility that is sponsored by SunEdison along with third-party equity investors.

The assets will be transferred to TerraForm in the future.

Following the deal, Invenergy will retain a 9.9% share in the wind farms located in the US and will extent certain operation and maintenance services to these wind farms.

TerraForm Power CEO Carlos Domenech said: "This transaction is expected to be immediately accretive to our shareholders, extend the visibility of our growth trajectory and unlock significant value as we aggregate a highly fragmented industry.

" Our ongoing partnership with Invenergy, the country’s leading independent wind owner and developer, provides further opportunities for collaboration, asset drop downs and dividend growth."

According to TerraForm, the transaction is expected to close in Q4 2015.

Howvever, the transaction is subject to approval from the Federal Energy Regulatory Commission and the Public Utility Commission of Texas.