Brookfield Renewable Completes Acquisition of TerraForm Global
December 28 2017 - 4:45PM
Transaction adds 952 megawatts of solar
and wind to Brookfield’s Diversified Renewable Power Portfolio;
Establishes Foothold in Attractive Growth Markets
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 100% of TerraForm Global Inc.
(“TerraForm Global”), a globally diversified renewable power
portfolio, for a total net investment of $750 million.
Brookfield Renewable’s total net investment of $230 million
was funded from available liquidity giving it a 31% interest.
TerraForm Global owns and operates a high
quality, 952 megawatt portfolio of recently constructed, contracted
solar and wind assets located predominantly in Brazil, India and,
China. TerraForm Global’s cash flows are underpinned by
long-term contracts with creditworthy off-takers and an average
remaining PPA term of 17 years.
“We are pleased to strengthen our global
portfolio of high quality renewable power assets with the addition
of these premier solar and wind facilities,” said Sachin Shah, CEO
of Brookfield Renewable. “This transaction expands our
presence in Brazil and provides a platform for further growth in
India and China’s attractive, high-growth renewables markets.”
The investment is expected to contribute
approximately $35 million of annual FFO to Brookfield Renewable on
a run-rate basis.
The Class A shares of TerraForm Global common
stock will be delisted from the Nasdaq Stock Market, with trading
suspended as of close of business today, and the assets of
TerraForm Global will be integrated into Brookfield Renewable’s
global renewable power portfolio.
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 16,000 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 over US$265 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@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”, “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
Global’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 Global; 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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