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TerraForm Power will focus on North American fleet

As TerraForm Power Inc. untangles itself from its bankrupt sponsor, SunEdison Inc., the yieldco plans to focus its portfolio on the North American market, interim CEO Peter Blackmore said on a conference call with Wall Street analysts.

A first step is the planned sale of the company's U.K. solar assets, which total 376 MW, according to a company presentation. The sale would relieve TerraForm Power of around $390 million in debt, Blackmore said Dec. 15. The company also owns 102 MW of solar assets in Chile.

In the longer term, TerraForm Power is looking to sell itself or find a new sponsor. Blackmore would not say whether the company would prefer one option over the other. Firm bids are due in early January 2017 and binding offers shortly thereafter.

"We look forward to returning back to a growth forecast and a growth posture where we can think about those opportunities to add energy storage as well as repowering some of our existing sites," TerraForm Power Executive Vice President and CFO Rebecca Cranna said on the call. "We do see opportunities to improve and optimize the fleet, and we look forward to returning to that after this year."

TerraForm Power is forecasting a 2016 loss of up to $145 million on revenue of up to $675 million. The company expects to finish the year with cash available for distribution in the range of $165 million to $185 million, assuming it resolves project-level defaults that have trapped about $100 million.

TerraForm Power, which lost about $208 million in 2015, had around $3.97 billion in net consolidated debt at the end of September.