(Bloomberg) — Atlantic Power Corp. agreed to sell its wind
farms to TerraForm Power Inc. for $350 million, giving the
company a cash injection after it failed to find a buyer last
The five operating wind farms in Idaho and Oklahoma can
produce as much as 521 megawatts of electricity and include
contracts to sell their output to utilities with an average life
of 18 years, Beltsville, Maryland-based TerraForm said in a
statement Wednesday. TerraForm went public last year and has
been acquiring power projects from its parent, renewable-energy
developer SunEdison Inc., and other sellers.
Atlantic Power, owner of power plants in the U.S. and
Canada, said in September it had not found a buyer or merger
partner after conducting a strategic review of its options. The
stock fell 22 percent last year, after declining 70 percent in
the prior year.
“This transaction represents a compelling valuation for
our assets and will enhance our financial strength and
flexibility,” Atlantic Power Chief Executive Officer James J.
Moore said in a separate statement. The shares fell 1.4 percent
to $2.77 at the close in New York.
TerraForm expects the plants will generate adjusted
earnings before interest, taxes, depreciation and amortization
of $56 million a year on average during the next decade. It will
also assume debt from the plants. TerraForm surged 4.7 percent
to $38.23, a record high.
Boston-based Atlantic Power was advised by Goldman Sachs
Group Inc. on the deal and Morgan Stanley advised TerraForm.
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Tina Davis, Will Wade