TerraForm to sell some UK solar projects (updated)

AlTi Global

06/01/2017 14:47

(Adds details, background and share move) 
    Jan 6 (Reuters) - TerraForm Power Inc  TERP.O , the 
"yieldco" of bankrupt solar company SunEdison Inc  SUNEQ.PK , 
said it would sell some UK solar projects to Vortex, the 
renewable energy investment platform of Egypt's EFG Hermes 
 HRHO.CA , for about $580 million. 
    Shares of TerraForm Power were up 3.3 percent at $13.5 in 
early trading. 
    TerraForm Power and TerraForm Global Inc  GLBL.O , the other 
yieldco of SunEdison, said in September they were exploring 
strategic alternatives, including a sale of their entire 
business. 
    TerraForm said on Friday its unit, TerraForm Power Operating 
LLC, would sell 24 operating solar projects representing 365 
megawatts (MW).  urn:newsml:reuters.com:*:nGNXNNUPJa 
    TerraForm Power Operating expects to receive about $208 
million of proceeds from the sale, net of expenses and other 
adjustments. 
    The deal proceeds will be used to pay down its net debt, 
TerraForm Power said. The company had long-term debt and 
financing lease obligations of $2.53 billion as of March 31. 
    TerraForm Power, which expects the deal to close in the 
first half of 2017, will continue to own an 11 MW operating 
solar plant in the UK, which it expects to divest in the future. 
    "Yieldcos" are publicly traded subsidiaries that hold 
renewable energy assets, including assets bought from their 
parents or sponsors. 
    The two yieldcos were not part of SunEdison's bankruptcy in 
April and the companies said at the time that they had 
sufficient liquidity to operate and that their assets were not 
available to satisfy the claims of SunEdison's creditors. 
    Citi was TerraForm Power's financial adviser and Linklaters, 
LLP its legal counsel. Watson Farley & Williams acted as legal 
counsel to Vortex. 
 
 (Reporting by John Benny in Bengaluru; Editing by Maju Samuel) 
 ((John.Benny@thomsonreuters.com ; within U.S. +1 646 223 8780; 
outside U.S. +91 80 6749 6718; Reuters Messaging: 
John.Benny.thomsonreuters.com@reuters.net)) 
 
Keywords: TERRAFORM POWER DIVESTITURE/