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NextEra Energy Partners acquires two US wind farms from sponsor

CTBR Staff Writer Published 06 July 2016

NextEra Energy Partners has acquired two US wind farms totalling 285MW from its sponsor, NextEra Energy Resources.

Nextera

The yieldco has acquired the 199MW Cedar Bluff Wind Energy Center in Kansas and the 86MW Golden Hills Wind Energy Center in California for about $312m, subject to working capital and some other adjustments.

The company also assumed about $253m worth of liabilities related to tax equity financing.

The balance of the purchase price is funded through cash in hand and through a draw under subsidiary of NextEra Energy Partners' revolving credit facility.

The purchase price will be utilised as working capital and other adjustments.

Both of the wind farms have been fully contracted under long-term power purchase agreements, with about 20 years of remaining contract lives..

With this acquisition, NextEra Energy Partners' portfolio will grow up to 2656MW, excluding ownership interests in equity method investments.

The yieldco expects the newly-added wind farms to contribute between $70m and $80m to adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) along with $29m to $34m of cash available for distribution (CAFD) on an annual run-rate basis as of 31 December 2016.

Next Era Energy chairman and CEO Jim Robo said: "This transaction once again demonstrates the strong and visible runway for future growth opportunities from our sponsor, NextEra Energy Resources, which we believe is a core strength of the partnership's value proposition.

"The partnership's already strong and flexible financial position for the year is further advanced by the addition of these high-quality projects expected to provide an attractive yield to investors. At the same time, the utilization of debt to fund a portion of the initial purchase price reflects the partnership's flexible and opportunistic approach to financing.

As we continue to execute on our growth strategy and increase our portfolio, we remain well-positioned to deliver value to our investors. In our view, NextEra Energy Partners remains the premier YieldCo in the space."


Image: NextEra Energy Partners acquires two wind projects producing 285MW. Photo: Courtesy of xedos4/ FreeDigitalPhotos.net.