NRG Yield Inc., a company created to hold mostly renewable-energy assets by NRG Energy Inc., bought North America’s largest wind farm from Terra-Gen Power LLC.
The company paid $870 million for the 947-megawatt Alta Wind facility in Tehachapi, California, and assumed $1.6 billion in non-recourse project financing, Princeton, New Jersey-based NRG Yield said today in a statement. The deal also includes a portfolio of land leases.
Projects like Alta Wind contribute to “visible dividend growth” for investors, David Crane, NRG Yield’s chairman and chief executive officer, said in the statement. The company is a so-called yieldco, which own and operate renewable power plants, offering lower risk profile and returns from their electricity sales. It currently pays a dividend of 36.5 cents a share.
NRG plans to offer $400 million in bonds due in 2024 to help finance the project, it said on July 28. Output from the project will be sold to Edison International’s Southern California Edison utility under a long-term contract.