Press Release

TerraForm Power Announces Acquisition of 25 MW of Solar Power Plants From Invenergy

  • Two operating solar projects in Ontario, Canada with expected annual unlevered Cash Available for Distribution ("CAFD") of $10 million
  • Remaining average contract duration of 18 years, with counterparty credit rating of Aa2
  • Expected unlevered cash-on-cash return in excess of 8%

BETHESDA, Md., May 4, 2015 (GLOBE NEWSWIRE) -- TerraForm Power, Inc. (Nasdaq:TERP), an owner and operator of clean energy power plants, today announced the acquisition of 25 MW of operating utility-scale solar power plants from Invenergy, a leading clean energy company that develops, owns and operates power generation and energy storage facilities in North America and Europe.

The two projects are the Sandringham Solar Energy Center (13 MW), and the Woodville Solar Energy Center (12 MW), located in the province of Ontario, Canada. Both power plants have been operational since 2013. These solar plants have feed-in-tariff (FiT) contracts with the Aa2-rated Ontario Power Authority (now part of the Independent Electricity System Operator). The contracts have an average remaining life of 18 years.

These plants are expected to generate annual unlevered CAFD of approximately $10 million over the next twelve months. This represents an expected unlevered cash-on-cash return of greater than 8%. TerraForm intends to fund the acquisition using existing balance sheet liquidity.

"We are grateful for the opportunity to work with Invenergy. This acquisition marks our fifth external M&A transaction since our IPO just nine months ago, further demonstrating the strength and agility of the combined TerraForm-SunEdison platform," said Carlos Domenech, Chief Executive Officer of TerraForm Power. "It also illustrates our ability to supplement the organic project drop downs from our sponsor, SunEdison, with high-quality third party project acquisitions."

The transaction is expected to close in the second quarter of 2015, subject to regulatory approvals and customary closing conditions.

About TerraForm Power

TerraForm Power is a renewable energy leader that is changing how energy is generated, distributed and owned. TerraForm Power creates value for its investors by owning and operating clean energy power plants. For more information about TerraForm Power, please visit:

Safe Harbor Disclosure

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including with respect to the annual unlevered CAFD and the cash-on-cash return expected to be generated, expected funding, future growth and financial performance, and typically can be identified by the use of words such as "expect," "estimate," "anticipate," "forecast," "intend," "project," "target," "plan," "believe" and similar terms and expressions. Forward-looking statements are based on current expectations and assumptions. Although TerraForm Power believes that its expectations and assumptions are reasonable, it can give no assurance that these expectations and assumptions will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, among others: the failure of counterparties to fulfill their obligations under offtake agreements; price fluctuations, termination provisions and buyout provisions in offtake agreements; delays or unexpected costs during the completion of projects under construction; TerraForm Power's ability to successfully identify, evaluate and consummate acquisitions from SunEdison or third parties or changes in expected timing of any acquisitions; government regulation; operating and financial restrictions under agreements governing indebtedness; TerraForm Power's  ability to borrow additional funds and access capital markets; TerraForm Power's ability to compete against traditional and renewable energy companies; TerraForm Power's ability to integrate acquired power plants, including the First Wind assets; and hazards customary to the power production industry and power generation operations, such as unusual weather conditions and outages. Furthermore, any dividends are subject to available capital, market conditions and compliance with associated laws and regulations.

TerraForm Power undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Expected annual unlevered CAFD and cash-on-cash return are estimates as of today's date, May 4, 2015, and are based on assumptions believed to be reasonable as of this date. TerraForm Power expressly disclaims any current intention to update such guidance. The foregoing review of factors that could cause TerraForm Power's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect TerraForm Power's future results included in TerraForm Power's filings with the Securities and Exchange Commission ("SEC") at In addition, TerraForm Power makes available free of charge at copies of materials it files with, or furnishes to, the SEC.

Cash Available for Distribution (CAFD)

CAFD is a supplemental non-GAAP measure of TerraForm Power's ability to earn and distribute cash to investors. This measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance, including net income, net cash provided by (used in) operating activities or any other liquidity measure determined in accordance with GAAP, nor is it indicative of funds available to fund our cash needs. 

         Anne Granfield
         Finsbury for TerraForm
         +1 (646) 805-2033

         +1 (650) 889-8628

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