BETHESDA, Md., May 11, 2017 (GLOBE NEWSWIRE) -- TerraForm Power, Inc. (Nasdaq:TERP) (“TerraForm Power” or the “Company”), an owner and operator of clean energy power plants, today announced that its subsidiary, TerraForm Power Operating, LLC (“Operating”), has completed its previously announced sale of a portfolio of 24 operating solar projects in the United Kingdom representing 365 MW (the “UK Portfolio”) to Vortex, a renewable energy platform managed by EFG Hermes’ private equity arm.
Operating received approximately $211 million of proceeds from the sale, net of transaction expenses and distributions taken from the UK Portfolio after announcement and before closing. The Company expects to use the transaction proceeds to enhance its liquidity position and reduce its net debt. Completion of the sale has also reduced non-recourse project debt on the Company’s balance sheet by approximately GBP 301 million.
“The sale of our UK portfolio demonstrates TerraForm Power’s continued execution on its strategic initiatives,” said Peter Blackmore, Chairman and Interim CEO of TerraForm Power. “Closing this sale is an important step forward to improve our balance sheet. Separately, our team continues to work diligently to meet the remaining closing conditions and complete the transaction with Brookfield.”
“We are delighted to complete the acquisition of such high quality solar assets. Our portfolio in Vortex has now reached 822 MW of wind and solar assets across Europe” said Karim Moussa, Head of Asset Management and Private Equity at EFG Hermes.
Citi served as exclusive financial advisor and Linklaters, LLP acted as counsel to TerraForm Power. Watson Farley & Williams acted as counsel to Vortex.
About TerraForm Power
TerraForm Power is a renewable energy company that is changing how energy is generated, distributed and owned. TerraForm Power creates value for its investors by owning and operating clean energy power plants. For more information about TerraForm Power, please visit: www.terraformpower.com.
About EFG Hermes
With a current footprint spanning seven countries in the Middle East and North Africa, EFG Hermes started in Egypt and has grown over 30 years of success to become the region’s leading investment bank. Drawing on our proven track-record and a team of 865 talented employees, EFG Hermes provides a wide spectrum of financial services that include investment banking, asset management, securities brokerage, research and private equity to the entire region.
EFG Hermes’ private equity arm is one of the Arab world’s leading private-equity groups with a special focus on investing in infrastructure (particularly renewable energy), healthcare and consumer products. With more than a decade of experience in investing across a broad industrial footprint, the firm is a leader in infrastructure private equity.
For further information about EFG Hermes, please visit www.efghermes.com and stay connected with them:
Vortex was established in 2014, sponsored by EFG Hermes, to pursue yielding renewable energy investments in Europe. Vortex comprises a team of 10 dedicated infrastructure and private equity specialists with wide experience in global infrastructure and renewable energy investments.
Vortex acquired in 2014 a 49% stake in wind energy company EDPR France in a USD 208 million leveraged buyout and acquired a 664 MW portfolio spanning Spain, Portugal, Belgium, and France in 2016 for USD 620 million, bringing Vortex’s net capacity in onshore wind to 457 MW.
Cautionary Note Regarding Forward-Looking Statements
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks, and uncertainties and typically include words or variations of words such as “expect,” “anticipate,” “believe,” “intend,” “plan,” “seek,” “estimate,” “predict,” “project,” “goal,” “guidance,” “outlook,” “objective,” “forecast,” “target,” “potential,” “continue,” “would,” “will,” “should,” “could,” or “may” or other comparable terms and phrases.
They include, without limitation, statements relating to the expected closing of the sale of the UK Portfolio; expected financial and operating metrics of the Company, including expected 2016 EBITDA; the expected proceeds from the sale of the UK Portfolio; the impact of the sale of the UK Portfolio on the Company’s liquidity position and debt; the future growth of the Company; a refinancing of the existing non-recourse project debt facility for the UK Portfolio; the service provider for the UK Portfolio; and the Company’s ownership or divestment of additional UK assets. These forward-looking statements are based on current expectations as of the date of this press release and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including but not limited to: whether and when the closing of the sale of the UK Portfolio occurs; whether certain conditions precedent are reached and the amount of time achieving such conditions precedent may take; management decisions by Vortex Solar; the operating and financial results of the Company; whether the Company is able to successfully negotiate a sale of additional UK assets on acceptable terms; as well as additional factors we have described in other filings with the Securities and Exchange Commission.
The risks included above are not exhaustive. Other factors that could adversely affect our business and prospects are described in the filings made by us with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
Source:TerraForm Power, Inc.