TerraForm Power, an owner and operator of clean energy power plants, and Brookfield Asset Management Inc., a leading global alternative asset manager, announced they have entered into a definitive agreement under which Brookfield will assume the role of TerraForm Power’s sponsor and Brookfield will become the controlling shareholder.
“With the successful completion of the Board’s strategic alternatives process, the TerraForm Power Board and management team are confident that Brookfield’s sponsorship will enable our company to deliver cash to shareholders while strengthening our operations for future value creation,” said Peter Blackmore, Chairman and Interim Chief Executive Officer of TerraForm Power. “This agreement with Brookfield is the culmination of our efforts to separate our operations from SunEdison and to position TerraForm Power for future success. With the support of Brookfield as TerraForm Power’s sponsor, we will gain additional resources to continue to expand our portfolio and increase cash flow on a per share basis. We look forward to working with the talented Brookfield team to achieve a smooth transition.”
The transaction has been approved by the Board of Directors of TerraForm Power by all directors voting upon the recommendation of the Corporate Governance and Conflicts Committee of TerraForm Power and has also been approved by the Board of Directors of Brookfield. The transaction also has the support of SunEdison.
“SunEdison is supporting this transaction, which it believes maximizes potential proceeds for the estate and aligns Brookfield with the interests of TerraForm Power in the future to create value,” said John Dubel, Chief Executive Officer and Chief Restructuring Officer of SunEdison Inc.
Brookfield’s sponsorship is expected to position TerraForm Power as a premier wind and solar energy company focused on North America and Western Europe, consistent with Brookfield’s history of delivering strong total shareholder returns for its other public vehicles. As TerraForm Power’s new sponsor, Brookfield expects to deleverage TerraForm Power with the goal of achieving investment grade credit ratings in the medium to long term. With the support of Brookfield, TerraForm Power will be well positioned for growth with access to one of the largest ROFO pipelines in the sector. Following this transaction, Brookfield and TerraForm Power will be both economically and structurally aligned.
As part of its strategic alternatives process, TerraForm Power also announced that it has entered into a settlement agreement with SunEdison in connection with the Chapter 11 bankruptcy case of SunEdison. This agreement is subject to the approval of the U.S. bankruptcy court overseeing the SunEdison Bankruptcy.
News item from TerraForm Power