SunEdison has agreed to sell to Terra Nova Renewable Partners two wind farms totalling 333MW for $209m in equity.
The two projects are the 185MW Bingham wind farm and 148MW Oakfield wind farm, both located in Maine.
Construction on Oakfield Wind was completed in the third quarter of this year and it is now online and operating.
The Bingham project is expected to be completed in 2016.
Proceeds from this transaction will 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 call rights to the projects should they be repurchased.
Any projects not repurchased by SunEdison would continue to be owned by the partnership.
Terra Nova Renewable Partners is the strategic equity partnership formed between SunEdison and institutional investors advised by JP Morgan Asset Management – Global Real Assets.
SunEdison chief financial officer Brian Wuebbels said: “This transaction represents good value for SunEdison’s shareholders and enhances our financial strength and flexibility.
“Terra Nova’s purchase is representative of the strong demand we’ve seen for ownership of SunEdison’s attractive renewable energy assets.”
JP Morgan Asset Management – Global Real Assets chief investment officer of OECD Infrastructure Matt LeBlanc said: “These high-quality SunEdison projects with long-term contracted cash flows are the kind of infrastructure assets our investors are interested in holding.
“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.”
Milbank, Tweed, Hadley & McCloy advised JP Morgan Asset Management – Global Real Assets on the aquisition.
Image: Morgue File
