TerraForm To Acquire Solar Assets Of Hudson Energy - Quick Facts

(RTTNews) - Solar power company TerraForm Power, Inc. (TERP) Wednesday said it will acquire the operating portfolio of Hudson Energy Solar Corp., a unit of Just Energy Group (JE.TO), in partnership with SunEdison (SUNE), which will gain the backlog of Hudson Energy.

TerraForm and SunEdison will split the company between them, with the former getting 101 projects (25.5 MWp), while SunEdison will acquire the development pipeline (4.5 MWp) which will then be added to TerraForm Power's call right project list.

TerraForm will pay upfront consideration of $35 million, including cash payment to Just Energy and debt repayment. There will be around $21 million of project level debt assumed within the portfolio, the company said.

As part of the acquisition, TerraForm will receive a right-of-first-offer agreement from Just Energy to acquire new solar projects built for Just Energy's customers in New Jersey, New York, Massachusetts and Pennsylvania.

TerraForm expects $5.1 million in "cash available for distribution" from the acquisition, which is scheduled to close early in the fourth quarter.

"We believe this market will provide considerable value to us for the foreseeable future and the attractive economics of this transaction - an expected first-year cash-on-cash return of 14 percent - bear out that point of view," said CEO Carlos Domenech.