Under the terms of the deal, NRG Yield will purchase stakes in 161MW Wildorado wind facility, 150MW Goat Wind facility and 122MW Elbow Creek wind facility in Texas as well as 54MW Elkhorn Ridge wind facility in Bloomfield, Nebraska and 90MW San Juan Mesa wind facility in Elida, New Mexico.
The portfolio also 21MW Crosswinds and 15MW Hardin facilities in Iowa; 29MW Forward and 38MW Lookout wind farms in Berlin, Pennsylvania; 20MW Odin wind facility in Minnesota; 95MW Sleeping Bear wind project in Woodward, Oklahoma; and 19MW Spanish Fork in Spanish Fork, Utah.
These projects, which were initially acquired by NRG Energy from Edison Mission Energy in April 2014, are expected to generate adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $41m.
Additionally, the company expects the wind projects to provide $21m of cash available for distribution on a run-rate basis and also provide incremental geographical and counterparty diversification.
NRG Yield chairman and CEO David Crane said: "NRG Yield continues to remain tactically vital to NRG’s long-term contracted growth strategy.
"With this fourth drop-down transaction from NRG Energy, we continue to deliver on NRG Yield’s growth strategy and to prove the symbiotic relationship between the two entities."
Subject to third party consents and other closing conditions, the deal is planned to be completed in the fourth quarter.
In 2014, NRG Yield acquired 947MW Alta Wind facility located in Tehachapi, California from Terra-Gen Power for $870m.
The deal also included a portfolio of land leases associated with the Alta Wind facility, which is claimed to be the largest wind farm in North America.
Image: NRG Yield plans to strengthen its portfolio of wind projects. Photo: courtesy of dan / FreeDigitalPhotos.net.
