Brookfield increases TerraForm Power stake to 65 pct

Brookfield Renewable Partners has acquired additional shares in TerraForm Power Inc (Nasdaq: TERP), a U.S. owner and operator of a renewable power portfolio including solar and wind assets. The buy, achieved through a US$650 million private placement, increased Brookfield’s interest in the company to 65 percent from 51 percent. The proceeds will be used to support TerraForm’s acquisition of Saeta Yield, a Spanish renewable energy company. The deal, announced in February, is valued at US$1.2 billion. Brookfield Renewable, an affiliate of Brookfield Asset Management, bought TerraForm last year for US$$656 million.

PRESS RELEASE

Brookfield Renewable Increases Ownership Stake in TerraForm Power

Investment Highlights:

Brookfield Renewable, together with its institutional partners, acquired an additional 61 million shares in TerraForm Power in a private placement
Proceeds will support the funding of TerraForm Power’s acquisition of Saeta Yield – a high-quality, 1,028 megawatt European solar and wind portfolio
Expected to be immediately accretive to unitholders, contributing approximately $80 million of incremental FFO annually to Brookfield Renewable
Post funding, Brookfield Renewable’s available liquidity remains robust at $1.4 billion

BROOKFIELD, NEWS, June 11, 2018 (GLOBE NEWSWIRE) — Brookfield Renewable Partners L.P. (TSX:BEP.UN) (NYSE:BEP) (“Brookfield Renewable”) today announced that, together with its institutional partners, they have acquired an additional 61 million shares of TerraForm Power (NASDAQ:TERP) through a private placement for a total consideration of $650 million, increasing their aggregate interest in TerraForm Power to 65% from 51% at a price of $10.66 per share of Class A common stock.

Brookfield Renewable’s total commitment of $420 million increases its interest in TerraForm Power to 30%, which it will fund through available liquidity. This incremental investment is expected to be immediately accretive to Brookfield Renewable unitholders, contributing approximately $80 million to Brookfield Renewable’s FFO on a run-rate basis.

This investment increases Brookfield Renewable’s exposure to the rapidly growing solar and wind sectors through its higher ownership interest in TerraForm Power, and through TerraForm Power’s announced acquisition of Saeta Yield – a leading, 1,028 megawatt European solar and wind portfolio, which is expected to close on June 12, 2018. With this acquisition, we continue to advance TerraForm Power’s position as a leading owner and operator of solar and wind assets in developed markets around the world.

“We have been extremely pleased with TerraForm Power’s performance to date as it makes excellent progress in advancing its business plan to enhance cash flows through organic growth and de-leveraging of its balance sheet,” said Sachin Shah, CEO of Brookfield Renewable. “Most importantly, within four months of our initial investment, TerraForm Power has created meaningful value for all investors as it continues to pursue high-quality solar and wind opportunities in Western Europe and North America.”

Brookfield Renewable Partners

Brookfield Renewable Partners operates one of the world’s largest publicly traded, pure-play renewable power platforms. Our portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, and totals over 17,000 megawatts of installed capacity and an 8,000 megawatt development pipeline. Brookfield Renewable is listed on the New York and Toronto stock exchanges.

Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a leading global alternative asset manager with over US$285 billion of assets under management.

For more information, please contact:

Media:
Claire Holland
(416) 369-8236
claire.holland@brookfield.com

Investors:
Divya Biyani
(416) 369-2616
divya.biyani@brookfield.com