Terra-Gen sells Alta Wind to NRG Yield

The unit of ArcLight Capital Partners and Global Infrastructure Partners will sell its 947MW Alta Wind projects to NRG Yield.

Terra-Gen Power, a unit of fund managers ArcLight Capital Partners and Global Infrastructure Partners, said it will sell its 947-megawatt (MW) Alta Wind projects to NRG Yield to repay debt under a credit facility, according to a statement.

Terra-Gen expects to close the transaction in the third quarter of this year, pending customary closing conditions, including regulatory approvals from the Federal Energy Regulatory Commission and the US Department of Justice and the Federal Trade Commission under the Hart-Scott-Rodino Act. The financial terms of the deal were not disclosed in the statement.

Apart from repaying outstanding debt under the Terra-Gen Finance credit facility, the proceeds from the sale will also be used to make distributions to its owners as well as for additional corporate purposes.

The sale of Alta Wind will divest Terra-Gen of its remaining phases of the Alta Wind Energy Center (AWEC), according to the statement.

Terra-Gen originally bought the AWEC development platform from Allco Finance in June 2008, and subsequently developed and constructed 11 interconnected wind projects totaling 1,547MW, all of which sell power under long-term, fixed-price power purchase agreements to Southern California Edison.

Terra-Gen owns and operates 1,919MW of generating capacity across 31 renewable power facilities, and has over 1,000MW in development.

“Terra-Gen is proud of its role in the development and construction of the Alta Wind Energy Center, the largest wind farm in North America,” said Jim Pagano, CEO of Terra-Gen. “We are excited to transact with NRG Yield, an industry leader in power and renewable generation.”

Citigroup and Morgan Stanley advised on the sale, while Latham & Watkins served as Terra-Gen's lead transaction counsel.