TerraForm Power has announced that Spain’s National Securities Market Commission (CNMV) has confirmed a 95 percent acceptance of the company’s tender offer to acquire all of the shares of Saeta Yield. The CNMV also set the closing date for the company’s acquisition of 95 percent of Saeta Yield for June 12. With greater than 90 percent of the shares being acquired, the company will pursue a statutory squeeze out to procure the remaining 5 percent of the shares, which is expected to close on July 3.
Saeta’s portfolio is comprised of 100 percent owned, recently constructed assets primarily in Western Europe, including 778 megawatts of onshore wind and 250 megawatts of concentrated solar, with an average age of six years and a remaining useful life in excess of 23 years.
Approximately 77 percent of Saeta’s revenues are regulated under the Spanish renewable power regime with limited resource and market price risk. The remaining 23 percent of revenues are under long-term power purchase or concession agreements.
To satisfy the $1.2 billion total purchase price, TerraForm Power intends to execute a funding plan comprised of a private placement of $650 million of its class A stock with its sponsor Brookfield Asset Management or its affiliates at the previously agreed back-stop price of $10.66 per share and the remaining $550 million will be financed with available liquidity, which the company intends to refinance with a combination of project financings of its unencumbered assets and cash to be released from Saeta’s assets.
TerraForm Power owns and operates a renewable power portfolio of solar and wind assets located primarily in the United States, totaling more than 2,600 megawatts of installed capacity.
