NRG Yield Reaches Deal With NRG To Buy 75% Of Portfolio Of Wind Assets

(RTTNews) - NRG Yield, Inc. (NYLD, NYLD.A) announced it has entered into an agreement with NRG to acquire 75% of the equity interests in a portfolio of wind projects consisting primarily of assets acquired by NRG from Edison Mission Energy in April 2014 (EME Wind Portfolio) for $210 million in total cash consideration, subject to working capital adjustments, plus assumed project debt of approximately $145 million and tax equity of approximately $97 million, as of August 1, 2015 on a pro rata basis.

The Company expects these assets to deliver approximately $41 million of Adjusted EBITDA and $21 million of cash available for distribution (CAFD) on a run-rate basis and provide incremental geographical and counterparty diversification. At closing, the portfolio is expected to have an average contracted life of approximately 11 years and an average offtaker credit rating of A33. The transaction is expected to close in the fourth quarter, subject to receipt of third party consents and other closing conditions.

The Company also reaffirmed third quarter and full year guidance for 2015 and continues to have the ability to deliver a target 15% dividend per share growth through 2018, which is not dependent on access to the equity capital markets.