NextEra Energy Partners has completed the acquisition of approximately 285 MW of contracted renewables projects from a subsidiary of its sponsor, NextEra Energy Resources, LLC.
Included in the acquisition are two wind facilities, Cedar Bluff Wind Energy Center and Golden Hills Wind Energy Center, commissioned in 2015 with GE technology. The acquisition expands the contracted renewable energy projects in NextEra Energy Partners' portfolio to approximately 2,656 MW.
Cedar Bluff Wind Energy Center is an approximately 199 MW facility located in Kansas (USA). Golden Hills Wind Energy Center is an approximately 86 MW facility located in California. Both are fully contracted under long-term power purchase contracts with strong credit worthy counterparties and remaining contract lives of approximately 20 years.
NextEra Energy Partners acquired the assets for a total consideration of approximately US$312 million, plus the assumption of approximately US$253 million in liabilities related to tax equity financing. The purchase price is subject to working capital and other adjustments. The partnership financed the transaction, in part, through proceeds of an issuance of a US$100 million non-amortizing term loan at the holding company, with the balance of the purchase price funded with cash on hand and through a draw under a subsidiary of NextEra Energy Partners' revolving credit facility.
NextEra Energy Partners expects the acquisition to contribute adjusted EBITDA, including grossed up (pre-tax) tax credits, of approximately US$70 million to US$80 million and cash available for distribution (CAFD) of approximately US$29 million to US$34 million, each on an annual run-rate basis as of Dec. 31, 2016.
Jim Robo, chairman and chief executive officer of NextEra Energy Partners, LP, said:
"This transaction once again demonstrates the strong and visible runway for future growth opportunities from our sponsor, NextEra Energy Resources, which we believe is a core strength of the partnership's value proposition. The partnership's already strong and flexible financial position for the year is further advanced by the addition of these high-quality projects expected to provide an attractive yield to investors. At the same time, the utilization of debt to fund a portion of the initial purchase price reflects the partnership's flexible and opportunistic approach to financing. As we continue to execute on our growth strategy and increase our portfolio, we remain well-positioned to deliver value to our investors. In our view, NextEra Energy Partners remains the premier YieldCo in the space."