NRG Yield seals Alta Wind deal

NRG Energy chief executive David Crane

NRG Yield chief executive David Crane

NRG Yield has completed its acquisition of the 947MW Alta Wind facility in Tehachapi, California, from Terra-Gen Power for $870m, plus the assumption of $1.6bn of non-recourse project financings.

The deal includes Alta I (150MW); Alta II (150MW); Alta III (150MW); Alta IV (102MW); Alta V (168MW); Alta X (137MW) and Alta XI (90MW).

Alta 1, X and XI utilize GE turbines and the others Vestas.

NRG Yield – the “yieldco” spun out of NRG Energy – in June said it would fund the deal through a mixture of new debt, equity and cash. It also includes a portfolio of land leases associated with the facility.

Terra-Gen, an affiliate of private equity firm ArcLight Capital Partners and infrastructure fund Global Infrastructure Partners, will use proceeds from the sale to repay debt and for additional corporate purposes.

Terra-Gen Operating Company will continue to provide asset management, and operations and maintenance services to Alta Wind. It has power off-take agreements in place with utility Southern California Edison.

The transaction means NRG Yield and NRG Energy between them will boast a 2.84GW wind portfolio, claimed to be the fifth-largest operating in North America behind NextEra Energy Resources, Iberdrola Renewables, Berkshire Hathaway Energy and EDPR Renewables.

“Completing this acquisition of North America’s largest wind facility not only showcases our ability to compete for and close deals for premier assets, it also underscores our commitment to carbon-free generation that will help accelerate the movement to a clean energy future,” says David Crane, NRG Yield chief executive.

“We welcome Alta Wind to our portfolio of contracted assets that contribute to visible dividend growth for our investors while supporting our sustainability goals by providing clean electricity from wind generation for tens of thousands of American homes,” he adds.

With the acquisition completed, NRG Yield is raising its full-year 2014 Adjusted EBITDA guidance to $455m, from $410m, and cash available for distribution (CAFD) guidance to $145m, from $140m.

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