NRG to acquire Spring Canyon II & III wind projects

NRG Yield has entered into a definitive agreement with Invenergy to acquire a majority stake in the Spring Canyon Wind facilities located in Logan County, USA.

The acquisition totals 63 MW of operating wind capacity utilizing 35 GE turbines with commercial operations achieved within the past year. The facilities have approximately 25 year remaining contract life with Platte River Power Authority and Invenergy will maintain their responsibilities as the turbine O&M provider.

NRG Yield has also entered into a definitive agreement with Fuel Cell Energy to acquire the University of Bridgeport Fuel Cell project in an all-cash transaction.

The Fuel Cell project will add an additional 1.4 MW of thermal capacity with a 12 year contract and an option for an additional 7 year extension with the University of Bridgeport in Bridgeport, CT.

The combined purchase price for the acquisitions is US$41 million, subject to customary working capital adjustments.

Both transactions are expected to close in the coming months and contribute Adjusted EBITDA of US$3 million and CAFD of $3 million on an annualized basis.

On January 2, 2015, NRG Yield completed the acquisition of the assets set forth below from NRG for US$489 million. The cash consideration was funded with $279 million of cash on hand and US$210 million from the revolver facility, plus assumed project debt of US$737 million (as of December 31, 2014) including adjustments for working capital.

• Walnut Creek – 485 MW natural gas facility located in City of Industry, CA
• Tapestry – three wind facilities totaling 204 MW, including Buffalo Bear 19 MW in Oklahoma, Taloga 130 MW in Oklahoma, and Pinnacle 55 MW in West Virginia
• Laredo Ridge – 80 MW wind facility located in Petersburg, NE

This transaction is expected to contribute incremental annual Adjusted EBITDA of US$120 million and CAFD of $35 million.