TerraForm offloads 365MW in UK
24 solar plants sold EFG Hermes’ renewable energy platform
TerraForm Power has entered into an agreement to sell 24 operating solar projects in the UK totalling 365MW to Vortex Solar, a renewable energy platform managed by EFG Hermes’ private equity arm.
The deal is valued at about $580m, TerraForm said.
It expects to use the proceeds to enhance its liquidity position and reduce its net debt by approximately $370m.
EFG Hermes head of private equity Karim Moussa said: “This portfolio offers us an attractive entry point with a long-term investment proposition in the country.”
Vortex is contracting Lightsource Renewable Energy for operations and maintenance and management services at the projects.
The transaction is expected to close in the first half of 2017, subject to certain conditions precedent, TerraForm said.
After close, TerraForm Power will continue to own one 11MW operating solar plant in the UK, which it expects to divest in the future.
Citi was financial advisor and Linklaters counsel to TerraForm Power, while Watson Farley & Williams was counsel to Vortex Solar.