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LONDON, UK / ACCESSWIRE / February 09, 2018 / Active-Investors.com has just released a free research report TerraForm Power, Inc. (NASDAQ: TERP) ("TerraForm"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TERP as the Company's latest news hit the wire. On February 07, 2018, the Company announced the launch of a voluntary tender offer to acquire 100% of the outstanding shares of Saeta Yield, S.A., a Spain-based renewable energy firm. TerraForm's bid to acquire Saeta is with the aim of expanding its footprint in Western Europe and expects that the deal will be accretive to the Company. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, TerraForm Power most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Commenting on the bid offer to acquire Saeta, John Stinebaugh, CEO of TerraForm, said:

"With the Saeta acquisition, we are excited to significantly grow our portfolio of high-quality wind and solar assets and expand our geographic footprint with a scale position in Western Europe. With Brookfield as our sponsor, we believe this transaction demonstrates our ability to originate acquisitions of high-quality assets on a value basis that are highly accretive to our shareholders."

Highlights of the deal

TerraForm is offering ?12.20 in cash for each Saeta's share. The offer price is at a 20% premium of Saeta's closing share price in January 2018, before the speculation on the possible takeover started. The majority of Saeta's shareholders - construction group Actividades de Construccion y Servicios SA and Global Infrastructure Partners, who together own nearly 50% shares - have committed that they are willing to sell their holdings to TerraForm. The value of Saeta's 50% holdings is approximately $600 million. Taking into consideration the remaining 50% shares of Saeta to be acquired through the tender offer, TerraForm expects the purchase price for Saeta to be approximately $1.2 billion.

TerraForm also expects that the deal will be completed in Q2 2018, subject to receiving regulatory approvals and other closing conditions. TerraForm will be able to acquire all shares of Saeta only if at least 90% of the shares are tendered in the offer. TerraForm's Board of Directors have already approved the deal.

If Saeta accepts TerraForm's bid, the latter company plans to finance the acquisition with sale of equity valued $400-million which will be backed by Brookfield Asset Management and balance $800 million with a mix of cash in hand and other existing credit facilities. Brookfield Asset Management is the majority shareholder of TerraForm with a 51% stake.

Expected benefits of the deal

TerraForm expects that if the deal is finalized, it would greatly benefit the Company. The deal is highly accretive to the Company's earnings by nearly 24% on a pro-forma basis. Saeta's assets, primarily in Western Europe, include 778 megawatts of onshore wind and 250 megawatts of concentrated solar power projects. The average age of each asset is six years and a productive lifetime of over 25 years. The best part is that 100% of Saeta's revenues are have stable frameworks and nearly 80% of its revenues are governed by Spanish renewable power regime have limited market price risks. Balance 20% revenues are backed by long term power purchase or concession agreements. These agreements have an average term of 15 years. Saeta has also has projects in Uruguay and Portugal. For TerraForm the acquisition of Saeta will be an opportunity to leverage its expertise in improving overall cost profile and optimizing its capital structure. The deal will allow TerraForm to deleverage its balance sheet and have a stronger investment grade. Given the accretion of the deal, TerraForm has raised its annual dividend from $0.72 per share to $0.76 per share, a clear increase of 6%. The Company has reiterated that its dividend growth target continues to be in the range of 5% to 8% per annum.

Dividend Announcement

TerraForm announced a quarterly dividend of $0.19 per share, which was approved by the Company's Board on February 06, 2018. The dividend is payable on March 30, 2018, with the record date of shareholders being February 28, 2018.

About TerraForm Power, Inc.

Bethesda, Maryland-based TerraForm is an owner and operator of a best-in-class, 2,600+ MW renewable power portfolio including solar and wind assets primarily in the US. Brookfield Asset Management is the Company's sponsor and majority shareholder with 51% stake. Brookfield is a leading global alternative asset manager with approximately $265 billion of assets under management. The Company plans to focus on acquiring, owning and operating solar and wind assets in North America (including Mexico) and Western Europe.

Stock Performance Snapshot

February 08, 2018 - At Thursday's closing bell, TerraForm Power's stock was marginally down 0.81%, ending the trading session at $11.04.

Volume traded for the day: 451.48 thousand shares.

Stock performance in the last six-month ? up 3.68%; and previous twelve-month period ? up 15.56%

After yesterday's close, TerraForm Power's market cap was at $1.64 billion.

The stock is part of the Utilities sector, categorized under the Diversified Utilities industry.

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