TerraForm crosses Atlantic
Voluntary tender launched to acquire European renewables outfit Saeta Yield
TerraForm Power is planning to acquire Saeta Yield, which owns European wind and solar assets, mainly in Spain.
The Saeta portfolio includes 778MW of onshore wind and 250MW of concentrated solar, with an average project age of six years.
A voluntary tender offer has been launched to acquire 100% of the outstanding shares in Saeta Yield at a price of €12.20 in cash per share.
The tender is expected to be completed in the second quarter of 2018, subject to certain closing conditions including obtaining regulatory approvals.
TerraForm Power will be able to acquire 100% of the shares provided that at least 90% of the shares are tendered in the offer. The total purchase price will be approximately $1.2bn.
The company said it has so far secured commitments from shareholders that together own over a 50% interest in Saeta for the tender.
TerraForm Power chief executive John Stinebaugh said: “With the Saeta acquisition, we are excited to significantly grow our portfolio of high-quality wind and solar assets and expand our geographic footprint with a scale position in Western Europe.”
The company said it has over $1bn under committed facilities, including $500m under its corporate credit facility, which has been upsized to $600m, and $500m from Brookfield Asset Management, which holds a 51% interest in the company.
“With Brookfield as our sponsor, we believe this transaction demonstrates our ability to originate acquisitions of high-quality assets on a value basis that are highly accretive to our shareholders,” said Stinebaugh.