Brookfield Renewable Closes TerraForm Power Transaction
October 16 2017 - 7:15PM
2,600 MW Diversified Renewable Power
Portfolio to Deliver Immediate Value to Brookfield Renewable
Shareholders
Brookfield Renewable Partners L.P. (TSX:BEP.UN) (NYSE:BEP)
(“Brookfield Renewable”) today announced that, together with its
institutional partners, it has closed the previously-announced
acquisition of a 51% interest in TerraForm Power (NASDAQ:TERP)
(“TERP”), a large scale, diversified portfolio of solar and wind
assets located predominantly in the U.S., for a total commitment of
$656 million.
Brookfield Renewable’s total commitment is $203
million, giving it an approximate 16% interest in TERP, funded
through available liquidity. The transaction is immediately
accretive to Brookfield Renewable shareholders, with TERP’s stable
revenue streams expected to contribute 6% accretion to Brookfield
Renewable FFO on a run-rate basis.
TERP represents Brookfield Renewable’s first
meaningful investment into solar and distributed generation and
provides a platform for further growth in these sectors.
“We are excited to complete the acquisition of
this premier portfolio of solar and wind assets,” said Sachin Shah,
CEO of Brookfield Renewable. “The TerraForm Power acquisition is an
attractive entry-point for us into the quickly-expanding solar and
distributed generation sectors, and its high quality revenue
streams will deliver immediate accretion to our shareholders.”
The investment is expected to contribute
approximately $40 million to Brookfield Renewable’s annual FFO.
TERP’s cash flows are underpinned by long-term contracts with
creditworthy off-takers and an average remaining PPA term of 15
years. The high quality assets in the portfolio have a long useful
life remaining, consisting of recently constructed projects that
have been operating for an average of four years.
TERP will remain a Nasdaq-listed public company
under the new sponsorship of Brookfield Asset Management, and will
be Brookfield’s primarily vehicle for acquisitions of operating
solar and wind assets in North America and Western Europe.
Brookfield Renewable also continues to progress
the related previously-announced acquisition of TerraForm Global
(NASDAQ:GLBL).
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, Colombia, Brazil, and Europe and
totals over 13,500 megawatts of installed capacity. 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 more than US$250 billion of assets
under management.
For more information, please contact:
Media:Claire Holland(416)
369-8236claire.holland@brookfield.com
Investors:Divya Biyani(416)
369-2616divya.biyani@brookfieldrenewable.com
Cautionary Statement Regarding Forward-looking
Statements
This news release contains forward-looking
statements and information within the meaning of Canadian
provincial securities laws and “forward-looking statements” within
the meaning of Section 27A of the U.S. Securities Act of 1933, as
amended, Section 21E of the U.S. Securities Exchange Act of 1934,
as amended, “safe harbor” provisions of the United States Private
Securities Litigation Reform Act of 1995 and in any applicable
Canadian securities regulations. The words “will”, “grow”,
“expect”, “progress”, “accrete”, “expand” and derivatives thereof
and other expressions which are predictions of or indicate future
events, trends or prospects and which do not relate to historical
matters identify the above mentioned and other forward-looking
statements. Forward-looking statements in this news release include
statements regarding the quality of Brookfield Renewable’s and
TerraForm Power’s businesses, the expectation for future growth of
cash flows and Funds From Operations (“FFO”), the availability of
liquidity and the growth prospects of certain segments of the
renewable power market. Although Brookfield Renewable believes that
these forward-looking statements and information are based upon
reasonable assumptions and expectations, you should not place undue
reliance on them, or any other forward-looking statements or
information in this news release. The future performance and
prospects of Brookfield Renewable are subject to a number of known
and unknown risks and uncertainties. Factors that could cause
actual results of Brookfield Renewable to differ materially from
those contemplated or implied by the statements in this news
release include weather conditions and other factors which may
impact generation levels at our facilities; economic conditions in
the jurisdictions in which we operate; our ability to sell products
and services under contract or into merchant energy markets; our
lack of control over all of our operations and subsidiaries; our
lack of access to all renewable power acquisitions that Brookfield
Asset Management Inc. identifies; changes to government
regulations, including incentives for renewable energy; our ability
to grow within our current markets or expand into new markets; our
ability to complete development and capital projects on time and on
budget; our inability to finance our operations or fund future
acquisitions due to the status of the capital markets; the ability
to effectively source, complete and, if applicable, integrate new
acquisitions and to realize the benefits of such acquisitions
including the acquisition of TerraForm Power; health, safety,
security or environmental incidents; regulatory risks relating to
the power markets in which we operate, including relating to the
regulation of our assets, licensing and litigation; risks relating
to our internal control environment; contract counterparties not
fulfilling their obligations; and other risks associated with the
construction, development and operation of power generating
facilities.
We caution that the foregoing list of important
factors that may affect future results is not exhaustive. The
forward-looking statements represent our views as of the date of
this news release and should not be relied upon as representing our
views as of any subsequent date. While we anticipate that
subsequent events and developments may cause our views to change,
we disclaim any obligation to update the forward-looking
statements, other than as required by applicable law. For further
information on these known and unknown risks, please see “Risk
Factors” included in our Form 20-F.
Cautionary Statement Regarding Use of Non-IFRS
Measures
This news release contains references to Funds
From Operations (“FFO”), which is not a generally accepted
accounting measure under IFRS and therefore may differ from the
definition of Funds From Operations used by other entities. We
believe that this is a useful supplemental measure that may assist
investors in assessing the financial performance and the cash
anticipated to be generated by our operating portfolio. Funds From
Operations should not be considered as the sole measure of our
performance and should not be considered in isolation from, or as a
substitute for, analysis of our financial statements prepared in
accordance with IFRS.
References to Brookfield Renewable are to
Brookfield Renewable Partners L.P. together with its subsidiary and
operating entities unless the context reflects otherwise.
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