SunEdison and TerraForm Global have entered into an agreement for SunEdison to sell TerraForm Global a series of projects located in India for the aggregate equity consideration of US$231 million subject to purchase price adjustments in favor of both SunEdison and TerraForm Global. These projects will replace a portion of the projects and the associated CAFD that were part of TerraForm Global's initial portfolio, which have subsequently been terminated acquisitions.
The projects will generate 425 MW of capacity in aggregate. A portion of the purchase price was paid on November 20 and the remainder of the purchase price will be payable on or before December 7, 2016, unless otherwise agreed. SunEdison utilized a portion of the proceeds from the sale to partially pay down its margin loan.
Brian Wuebbels, Chief Executive Officer of TerraForm Global, stated:
"This transaction provides higher yields replacing lower-yielding IPO projects that were intended to be acquired through M&A and is consistent with our strategy to focus on organic growth provided by our sponsor. We are pleased to be able to add these accretive assets with 20 year contracted cash flows to TerraForm Global's portfolio and believe they are critical to achieving our 2016 dividend guidance."
Ahmad Chatila, President and Chief Executive Officer of SunEdison, commented:
"This agreement is a win-win for both SunEdison and TerraForm Global shareholders. This transaction provides accretive DPS to TerraForm Global shareholders."