MARYLAND HEIGHTS, Mo. — SunEdison, the largest global renewable energy development company, announced Dec. 10 that it has agreed to sell 333 megawatts of Maine wind-power assets to Terra Nova Renewable Partners for $209 million, part of a strategic partnership formed between SunEdison and institutional investors advised by JPMorgan.
The two acquired projects, which will continue to be operated by SunEdison, are the 185-megawatt Bingham wind farm and 148-megawatt Oakfield wind farm.
Construction on Oakfield Wind was completed this fall. It is now fully operational and selling its power to Eversource and National Grid. The largest wind operation currently in New England, it provides major economic support for the local community and highly technical jobs.
Bingham’s plant will be even bigger at 185 MW when completed in 2016. Construction is underway and will continue throughout the winter. Foundations are currently being installed and turbine parts delivered. This is creating dozens of construction jobs and highly skilled technical jobs. The power will be sold at a very competitive price to Eversource, National Grid and Unitil.
These projects are expected to save New England ratepayers millions of dollars, said SunEdison representatives in a press statement.
Terra Nova Renewable Partners is the strategic equity partnership formed between SunEdison and institutional investors advised by J.P. Morgan Asset Management ‚Ä“ Global Real Assets. The Bingham and Oakfield wind farm assets were purchased for $209 million in equity, with the enterprise value of the deal at $787 million, officials said. SunEdison will have the right to repurchase the assets held by the partnership for up to five years.
“This transaction represents good value for SunEdison’s shareholders and enhances our financial strength and flexibility,” said Brian Wuebbels, SunEdison’s chief financial officer. “Terra Nova’s purchase is representative of the strong demand we’ve seen for ownership of SunEdison’s attractive renewable energy assets.”
Matt LeBlanc, J.P. Morgan Asset Management ‚Ä“ Global Real Assets’ chief investment officer of OECD infrastructure, said, “This is a significant transaction and the first with SunEdison since we announced our strategic partnership, and we look forward to completing more in the future.”
The strategic partnership was announced in September 2015. Under the partnership commitment, J.P. Morgan’s clients are expected to provide equity to purchase renewable energy projects developed or purchased by SunEdison. Remaining project costs are expected to be funded with traditional, non-recourse commercial bank debt and tax equity.
SunEdison has the right to repurchase the projects from the partnership for a period of five years, and will grant TerraForm Power, Inc., a global owner and operator of clean energy power plants, rights to the projects should they be repurchased. Any projects not repurchased by SunEdison would continue to be owned by the partnership.
