TerraForm is expecting a levered cash-on-cash return of over 9% from the 23 MW of solar energy, which are distributed throughout Arizona, California, Connecticut, Massachusetts, New Jersey and Pennsylvania.
It will pay Integrys, a utility, a total of $45 million, in addition to assuming $10 million in project debt. Overall, the 23 MW from the 48 plants which have a nameplate capacity of 34 MW are expected to reap an average levered Cash Available for Distribution (CAFD) of approximately $5 million annually over the next 10 years.
The plants, which came into operation between 2008 and 2013, have all secured long-term PPAs. The contracts are still valid for an average of 15 years.
"This acquisition demonstrates TerraForm’s continued leadership in the distributed generation segment and depth of utility relationships which continue to accelerate our growth trajectory," said Alex Hernandez, CFO of TerraForm Power.
TerraForm, a yieldco subsidiary of SunEdison, has been steadily growing its solar portfolio over the past few months. In April, it was announced that TerraForm had acquired 53 MW of solar power in the U.K., with plans to add another 44 MW in Q2.
Earlier that month, SunEdison moved 168 MW of distributed generation and utility-scale solar PV plants from its portfolio to the yieldco; while in January, TerraForm bought 26 MW of distributed solar plants from the U.S. renewable energy giant. Back in November, TerraForm paid $250 million for 77.6 MW worth of solar projects from U.S.-based Capital Dynamics.