Atlantic Power in $350 Million Wind-Farm Deal With TerraForm

(Bloomberg) — Atlantic Power Corp. agreed to sell its wind

farms to TerraForm Power Inc. for $350 million, giving the

company a cash injection after it failed to find a buyer last

year.

The five operating wind farms in Idaho and Oklahoma can

produce as much as 521 megawatts of electricity and include

contracts to sell their output to utilities with an average life

of 18 years, Beltsville, Maryland-based TerraForm said in a

statement Wednesday. TerraForm went public last year and has

been acquiring power projects from its parent, renewable-energy

developer SunEdison Inc., and other sellers.

Atlantic Power, owner of power plants in the U.S. and

Canada, said in September it had not found a buyer or merger

partner after conducting a strategic review of its options. The

stock fell 22 percent last year, after declining 70 percent in

the prior year.

“This transaction represents a compelling valuation for

our assets and will enhance our financial strength and

flexibility,” Atlantic Power Chief Executive Officer James J.

Moore said in a separate statement. The shares fell 1.4 percent

to $2.77 at the close in New York.

TerraForm expects the plants will generate adjusted

earnings before interest, taxes, depreciation and amortization

of $56 million a year on average during the next decade. It will

also assume debt from the plants. TerraForm surged 4.7 percent

to $38.23, a record high.

Boston-based Atlantic Power was advised by Goldman Sachs

Group Inc. on the deal and Morgan Stanley advised TerraForm.

To contact the reporter on this story:

Christopher Martin in New York at

cmartin11@bloomberg.net

To contact the editors responsible for this story:

Reed Landberg at

landberg@bloomberg.net

Tina Davis, Will Wade

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