TerraForm hires Citi to sell UK solar assets – sources

12 Apr 16 – TerraForm Power [NASDAQ:TERP], a renewable energy developer, has hired Citi to advise on the sale of its UK solar power assets, two sources familiar with the situation said.

The sale was launched about four weeks ago and indicative bids are due the week beginning 11 April 2016, the first source said.

Earlier this month, DE Shaw Composite Holdings (DESCO) and Dearborn Capital Partners IV filed a complaint asking a New York state court to accelerate a USD 231m payment from TerraForm Power, citing the threat of the company’s looming bankruptcy filing. DESCO and Dearborn represented First Wind Holdings in its January 2015 sale to TerraForm Power and SunEdison [NYSE:SUNE].

TerraForm Power and sister company TerraForm Global [NASDAQ:GLBL] ] are yieldcos of SunEdison. In a 29 March regulatory filing, TerraForm Global warned “there is a substantial risk that [parent company] SunEdison will soon seek bankruptcy protection” after two previous delays of its annual earnings report.

TerraForm’s solar portfolio in the UK has an installed capacity of 376MW, and all of the solar farms are operational. The portfolio is worth approximately GBP 600m, the second source said.

The portfolio for sale comprises the solar power farms: Crucis Farm in Gloucestershire (16MW), Brook Farm in Oxfordshire (8.9MW), Says Court in Bristol (19.8MW), Fareham in Hampshire (20.5MW), Westwood in Kent (9.2MW), Knowlton in Kent (11.5MW), Norrington in Wiltshire (11.1MW), Fairwinds in Essex (12.2MW), Exning in Cambridgeshire (30.3MW), Manston in Ramsgate (9.8MW), Langunnett in Lostwithiel (6.1MW), West Farm in Cosheston (7.6MW), Crundale in Haverfordwest (37.8MW), Bury Lane In Royston (22.2MW), Hill Farm (7.7MW), Prestop Park Farm in Liecestershire (15.8MW), Crundale Extension (5.9MW), Epwell Grounds in Banbury (9MW), Brynteg in Camarthenshire (14.8MW), Wrockwardine in Shropshire (10.5MW), Horam in West Sussex (8.1MW), Castle Combe in Chippenham (15.3MW), Hillhouses Farm in Gloucestershire (28.3MW), Little Neath in Pembroke (6.1MW), Burthy in Cornwall (13MW), and Sundorne Grove in Shropshire (18.2MW).

TerraForm and Citi did not respond to requests for comment.

by Katie McQue

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