Energy

NRG Pays $2.5 Billion for Largest Wind Farm in America

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Source: Thinkstock

NRG Yield Inc. (NYSE: NYLD) announced Wednesday morning that it has agreed to acquire the Alta Wind facility from Terra-Gen Power for $870 million plus the assumption of $1.6 billion in non-recourse project financings and subject to customary working capital adjustments. The facility is located in Tehachapi, Calif., and comprises 947 megawatts of operating wind capacity.

NRG Yield is majority-owned by NRG Energy Inc. (NYSE: NRG) and was spun-off as a separate public company in December 2012 for the purpose of owning and operating renewable and conventional electricity generating assets. NRG Yield began trading as a public company in July 2013. Last month, NRG Yield agreed to acquire three facilities from NRG for $349 million plus assumed debt and working capital adjustments.

Once the Alta Wind acquisition is completed, NRG Yield will own a portfolio of 2,839 megawatts of wind power generation, the fifth-largest wind power portfolio in the United States. NRG Yield expects to close the transaction in the third quarter of this year, subject to regulatory approvals and the usual closing conditions.

NRG Yield’s shares traded up 3.5% in the noon hour Wednesday, at $48.56 in a 52-week range of $26.50 to $49.45. The high was set earlier in the morning.

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