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NRG Yield to buy 947MW Alta Wind farm in California

CTBR Staff Writer Published 05 June 2014

NRG Yield, a unit of NRG Energy, has agreed to acquire the 947MW Alta Wind facility located in Tehachapi, California, US, from Terra-Gen Power.

Wind

The wind farm will be acquired for $870m, plus the assumption of $1.6bn of non-recourse project financings and subject to customary working capital adjustments.

The acquisition also includes a portfolio of land leases associated with the Alta Wind facility, which is claimed to be the largest wind farm in North America.

NRG aims to fund the purchase through a mix of new debt, equity and cash.

The transaction, which is subject to regulatory approvals, is expected to be completed in the third quarter of 2014.

The deal is expected to add about $220m to NRG Yield's annual run-rate earnings before interest, taxes, depreciation and amortization.

Alta Wind facility, which features 386 GE and Vestas turbines, has long-term power purchase agreements with Southern California Edison.

NRG Yield chairman and chief executive officer David Crane said called the Alta Wind agreement a landmark investment for the company.

"Alta Wind contributes to our objective of sustainable and visible dividend growth for our investors while supporting the generation of carbon-free electricity for thousands of homes through large-scale wind."

The acquisition increases the combined wind portfolio owned by NRG Yield and NRG Energy to 2,839MW.


Image: Alta Wind facility features 386 GE and Vestas turbines. Photo: Courtesy of dan/FreeDigitalPhotos.net.