MARYLAND HEIGHTS, Mo. | NEWS RELEASE —
SunEdison has signed definitive agreements to acquire five portfolios of renewable energy projects and two corporate platforms, LAP Holding, BV in Latin America and two subsidiaries of Honiton Energy Holding, Ltd., in China, as well as the closing of equity investments and an acquisition debt facility for its emerging markets initiatives.
Through these combined transactions, SunEdison will secure 757 MW of operating projects and 1,918 MW of ROFO projects, of which 534 MW are operating ROFO projects enhancing visibility into acquisition opportunities in emerging markets.
In addition to the projects represented in the table above, the LAP transaction also benefits the SunEdison development division by securing 204 MW of backlog projects with dollar denominated power purchase agreements (PPAs) and 659 MW of development pipeline projects in Peru and Chile to further strengthen its organic development business.
“As we described in our Capital Markets Day in February, SunEdison intends to act quickly to address the opportunity in emerging markets, where the majority of future global electric power infrastructure investments will be deployed,” said Ahmad Chatila, CEO of SunEdison. “In aggregate, these seven transactions bolster our emerging markets platform. These acquisitions are the result of an extensive global search for the best development partners in each of our target markets – partners with operating fleets of high quality power plants with long-term contracts with creditworthy counterparties. Our announcement today is the first stage in our plan to move rapidly to capitalize on the opportunity to provide clean, renewable, cost-efficient power to the fast-growing emerging markets.”
In connection with the referenced acquisitions, SunEdison announced today that Blackstone Group, Everstream Opportunities Fund II and Altai Capital Management have made an investment of $175 million in a SunEdison subsidiary. SunEdison also announced that it has secured a $362 million non-recourse acquisition facility (the “Acquisition Bridge Facility”) for the emerging market initiatives with JPMorgan Chase Bank, Barclays, Citi and Morgan Stanley. Proceeds of the Acquisition Bridge are available for the funding of third party acquisitions of operating renewable energy projects. The remainder of the funds required in connection with the acquisitions will be raised through capital markets transactions.
The power plants to be acquired through these transactions have high-quality counterparties including sovereign governments and large utilities, and have a weighted average remaining contract life of 17 years.
These transactions are expected to close in either the second or third quarter of 2015, subject to regulatory approvals, third-party consents and customary closing conditions.