TerraForm Power Inc. is acquiring a 77.6 MW distributed generation (DG) solar power portfolio from the Capital Dynamics U.S. Solar Energy Fund LP, a closed-end private equity fund.
The 39 solar power plants in the acquired portfolio are located in California, Massachusetts, New Jersey, New York and Pennsylvania. The portfolio's power purchase agreements have a weighted average remaining contract life of 19 years.
Upon closing, the transaction is expected to provide approximately $21 million. The transaction is expected to close before the end of the year, subject to regulatory approvals and customary closing conditions. Barclays and JPMorgan acted as exclusive financial advisors to TerraForm Power.
‘This transaction demonstrates TerraForm Power's momentum in delivering on our growth strategy and our ability to execute third-party acquisitions,’ says Carlos Domenech, CEO of TerraForm Power. ‘These high-quality assets are expected to provide TerraForm Power with an attractive levered cash-on-cash return of approximately 9% while adding further geographic and cashflow diversification.’