TerraForm Power Inc on March 19 issued a registration statement for $400 million in class A common shares.
Net proceeds from the offering will be used to fund the acquisition of shares of Saeta Yield SA in a voluntary tender offer and for general corporate purposes.
The tender offer will be for €12.20 in cash per share of Saeta Yield and is anticipated to be completed in the second quarter of 2018. Saeta Yield is a Spanish corporation and a publicly listed European owner and operator of 778 MW of onshore wind and 250 MW of concentrated solar assets, located primarily in Spain.
TerraForm Power said it expects an affiliate of Brookfield Asset Management Inc. to purchase shares equal to at least 51% of the total number of shares offered.
In connection with the offer, Brookfield also agreed to back-stop the offering at a price of $10.66 per class A share. In the event that the back-stop is utilized by TerraForm Power, Brookfield may purchase up to 100% of the class A shares sold in the offering.
TerraForm Power is sponsored by Brookfield, which currently owns an approximate 51% interest in TerraForm Power.