Terra-Gen, which is backed by ArcLight Capital Partners and Global Infrastructure Partners, has agreed to sell its Alta Wind to NRG Yield. No financial terms were disclosed for the transaction, which is expected to be completed in the third quarter of 2014. Citigroup and Morgan Stanley were the advisors on the sale.
NEW YORK, June 4, 2014 /PRNewswire/ — Terra-Gen Power, LLC (“Terra-Gen”), an affiliate of ArcLight Capital Partners and Global Infrastructure Partners, announced today that it has signed a purchase and sale agreement with NRG Yield for the sale of its 947 megawatt (“MW”) Alta Wind I-V, X & XI, and Realty projects (“Alta Wind”).
Terra-Gen expects to close the transaction in the third quarter of 2014, pending customary closing conditions, including the receipt of regulatory approval by the Federal Energy Regulatory Commission (FERC) and the U.S. Department of Justice and the Federal Trade Commission under the Hart-Scott-Rodino Act.
Terra-Gen will use proceeds from the sale to repay outstanding indebtedness under the Terra-Gen Finance credit facility, to make distributions to its owners, and for additional corporate purposes. Terra-Gen Operating Company will continue to provide asset management and operations and maintenance services to Alta Wind after the sale.
The sale of Alta Wind will divest Terra-Gen of its remaining phases of the Alta Wind Energy Center (“AWEC”). Terra-Gen originally acquired the AWEC development platform from Allco Finance in June 2008, and subsequently developed and constructed eleven interconnected wind projects totaling 1,547 MW, all of which sell power under long-term, fixed price power purchase agreements to Southern California Edison (“SCE”).
“Terra-Gen is proud of its role in the development and construction of the Alta Wind Energy Center, the largest wind farm in North America,” said Jim Pagano, CEO of Terra-Gen. “We are excited to transact with NRG Yield, an industry leader in power and renewable generation.”
Citigroup and Morgan Stanley advised on the sale. Latham & Watkins served as Terra-Gen’s lead transaction counsel.
Terra-Gen owns and operates 1,919 MW of generating capacity across 31 renewable power facilities, and has over 1,000 MW in development. Terra-Gen Power is one of the nation’s leading renewable energy providers and the only American company that provides electricity on a utility scale from three major renewable energy sources: wind, solar and geothermal power. Terra-Gen is headquartered in New York City with offices in San Diego, Reno, Denver, and Charlotte. More information about Terra-Gen can be found at http://www.terra-genpower.com.
ABOUT ARCLIGHT CAPITAL PARTNERS:
ArcLight is one of the leading private equity firms focused on North American energy infrastructure assets. Since its establishment in 2001, ArcLight has invested over $11 billion across multiple energy cycles in more than 85 power, midstream and production assets. Headquartered in Boston, Massachusetts with an additional office in Luxembourg, the firm’s investment team brings extensive energy expertise, industry relationships, and specialized value creation capabilities to its portfolio. ArcLight and its co-investors own a 61% interest in Terra-Gen Power. More information about ArcLight can be found at http://www.arclightcapital.com.
ABOUT GLOBAL INFRASTRUCTURE PARTNERS:
Global Infrastructure Partners (“GIP”) is an independent infrastructure fund that invests worldwide in infrastructure assets and businesses in both OECD and select emerging market countries. GIP targets investments in single assets, and portfolios of assets and companies in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment, and waste management. GIP has offices in New York, London, and Colorado Springs, with an affiliate in Sydney and portfolio company operations headquarters in Stamford, Connecticut. For more information, visit www.global-infra.com.