TerraForm Power, a subsidiary of bankrupt solar firm SunEdison, has sold 365 MW of solar energy capacity in the UK.
The deal comprises 24 operating solar projects around the UK that TerraForm took control of from its parent company in 2014 and 2015.
The portfolio is being bought by Vortex, a renewable energy platform managed by EFG Hermes’ private equity arm, in which Malaysian firm TNB holds a 50 per cent stake.
The transaction is valued at $580 million, TerraForm said.
TerraForm, SunEdison’s yieldco, has retained the 11 MW Norrington solar farm in Wiltshire that remains the subject of a legal dispute.
TerraForm says it intends to sell the Norrington site in the future.
Vortex intends to refinance the existing non-recourse project debt facility with a new upsized facility and will enter into new contracts with Lightsource Renewable Energy for operations & maintenance and management services.
The transaction is expected to close in the first half of 2017. After close, TerraForm Power will continue to own an 11 MW operating solar plant in the United Kingdom, which it expects to divest in the future.
Yieldcos are publicly traded subsidiaries that own and operate renewable energy assets, primarily those purchased from their parent companies. Transferring assets to yieldcos enables developers to recycle capital while retaining control of assets.
TerraForm is not part of SunEdison’s bankruptcy proceedings.