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TerraForm Power, Inc. Reports Third Quarter 2015 Financial Results

Published 09 November 2015

TerraForm Power, Inc., a global owner and operator of clean energy power plants, reported third quarter 2015 financial results, including CAFD of $71 million for the quarter.

"We are pleased to announce strong 3Q results while raising our dividend" said Carlos Domenech, Chief Executive Officer. "We continue to execute on our plan, enabling us to raise our dividend to $1.40 on an annualized basis - up 55% from our initial dividend one year ago. Our portfolio has been able to deliver solid results, quarter after quarter, due to its geographic diversity and balanced mix of contracted solar and wind power plants. We will remain focused on optimizing the performance of our fleet to continue to deliver strong CAFD and dividends for our shareholders."

3Q Financial Results

TerraForm Power reported adjusted revenue of $153 million, Adjusted EBITDA of $126 million, and CAFD of $71 million in the third quarter. During the first nine months of the year, the Company generated CAFD of $175 million, and retained $42 million for reinvestment, after distributions to shareholders.

3Q Dividend Increase

TerraForm Power's Board of Directors has declared a third quarter dividend for TerraForm Power's Class A common stock of $0.35 per share, or $1.40 per share on an annualized basis. This represents a 4% increase from the second quarter 2015 dividend of $0.335 per share, or $1.34 per share on an annualized basis. The 3Q dividend is payable on December 15, 2015 to shareholders of record as of December 1, 2015.

3Q Drop Downs from SunEdison

During the third quarter, TerraForm Power acquired 34 MW of contracted US solar power plants from SunEdison. All of these power plants were on TerraForm Power's call right list, which is comprised of SunEdison projects to which TerraForm Power has the exclusive right to purchase upon reaching commercial operation. The acquired drop down portfolio is contracted with a weighted average contract life of 21 years, and an average off-taker credit rating of A-. The power plants are expected to generate an average annualized unlevered CAFD of $6 million over the next ten years, representing a levered cash-on-cash return of approximately 11%.

Liquidity for Growth

As of September 30, 2015, TerraForm Power had total liquidity of $1.3 billion, including unrestricted cash on hand of $636 million and a $725 million revolving credit facility. The Company amended the maximum permitted size of its revolving credit facility during the quarter to $1.0 billion, commensurate with the growth in the Company's asset base and cash flows.

Subsequent Events: U.K. Portfolio Project Refinancing

On November 6, 2015, the Company entered into definitive agreements for a new $475 million (equivalent GBP 314 million) project finance facility for its U.K. asset portfolio. The New U.K. Facility matures in 2022 and has a weighted average cost of approximately 4%. The Company expects to receive approximately $160 million of net proceeds from the New U.K. Facility (net of repayment of existing U.K. indebtedness, funding project-level reserves, and fees and expenses). Pro forma for this financing, the Company's cash on hand is approximately $800 million and liquidity is approximately $1.5 billion.

"The U.K. project financing demonstrates the Company's access to financing markets at an attractive cost of capital and ability to continue funding the growth of our business. We remain focused on further strengthening the Company's liquidity position and maintaining the quality of our balance sheet" said Alex Hernandez, TerraForm Power's Chief Financial Officer.

Source: Company Press Release