Under the terms of the $2 billion deal, Terraform will take immediate ownership of 460MW, paying for it through a combination of cash, new bond financing and $450 million in non-recourse project debt.
The remaining 470MW will be acquired by a new warehouse facility, sponsored by SunEdison and third party equity investors, to hold the assets until they are sold to Terraform in the future.
The seven wind projects, located in Canada and the US, have a weighted average remaining contract life of 19 years and are expected to generate $141 million of annual cash flow. Invenergy will retain a 9.9% stake in the US assets.
Invenergy plans to use the proceeds to invest in future projects. "As an independent, privately held company, this transaction is consistent with how we finance growth in our capital-intensive industry," says CFO Jim Murphy.
The companies have also agreed to a continuing partnership, providing SunEdison and Terraform with the opportunity for future acquisitions from Invenergy's 6.6GW operating portfolio and 2.5GW of additional projects under construction or contract.
Last week, SunEdison signed a memorandum of understanding to form a project development joint venture with Gamesa. The JV would acquire up to 1GW of Gamesa's pipeline to develop, with a focus on India and Mexico.
SunEdison recently acquired Indian wind project developer Continuum and its 1.4GW portfolio, and Central American renewables developer Globeleq Mesoamerica and its 569MW porfolio.
Manufacturer GE also acquired a stake in Terraform and will provide servicing support to the yieldco's portfolio.