TerraForm Global (GLBL) Offers Investor Presentation; Sees FY16 Financial Metrics Inline with Expectations

TerraForm Global, Inc. (Nasdaq: GLBL) posted a presentation on its website containing estimates for key financial metrics for 2016 and an update on the Company’s clear path forward as an operationally independent company. The presentation is available on the Investors section of the TerraForm Global website at www.terraformglobal.com. The presentation has also been included as an exhibit to Form 8-K furnished by the Company to the Securities and Exchange Commission.

“We continue to take action to strengthen our company, improve performance and operate independently,” said Peter Blackmore, TerraForm Global’s Chairman and Interim Chief Executive Officer. “The entire TerraForm Global team remained committed to successfully executing our strategy despite external challenges. During the year we maintained our financial flexibility and stabilized our balance sheet through the repayment of our credit revolver. To enhance our Board of Directors and oversight of our operations, we increased the authority of the Corporate Governance and Conflicts Committee, and appointed two new independent directors to the Board. We are confident the strategic initiatives we are undertaking will enable us to maximize value for all TerraForm Global stockholders.”

Highlights of the presentation include:

TerraForm Global’s High-Quality Contracted Renewable Generation Portfolio Remains Strong:

• The Company’s diverse mix of assets across seven countries, including 947 MW of wind and solar power plants. This portfolio of renewable assets has an average age of 4 years and average estimated remaining lifespan of 26 years.
• TerraForm Global’s wind and solar power plant assets are under long-term contracts with average remaining PPA life of 17 years.

Preliminary 2016 Financial Estimates:

• For full year 2016, TerraForm Global expects to deliver revenue of $215 - $242 million, a net loss of $11 - $51 million and adjusted EBITDA of $153 - $180 million. (The Street sees FY16 revenue of $133.3 million.)
• The Company expects key 2016 financial metrics to be in-line with management expectations post-SunEdison bankruptcy with curtailment and turbine outages offset by favorable performance, cost optimization and currency appreciation.
• 2016 cash available for distribution (“CAFD”) is expected to be substantially lower than forecasted pre-SunEdison bankruptcy due to various factors, including loss of financial and operational support from SunEdison.

TerraForm Global’s Clear Path Forward as an Operationally Independent Company:

• The Company is taking significant actions to ensure business continuity as it separates operations from SunEdison:
  • Management is focused on implementing a stand-alone structure that will allow the Company to operate independently from SunEdison.
  • Established a retention plan for in-house talent to minimize attrition and stabilize business operations.
  • Developed a new organization structure to streamline business and allocate responsibilities.
  • Increased authority of the Corporate Governance and Conflicts Committee.
  • Appointed two new independent Board members on October 13, 2016, bringing the Board’s independent director composition to five of nine directors.
• TerraForm Global expects to be operationally independent by January 2017.

As previously announced on September 19, 2016, the TerraForm Global Board of Directors has initiated a process to explore and evaluate potential strategic alternatives to maximize stockholder value, including a merger or sale of its entire business. This process is ongoing and the Company will continue to provide updates as the process unfolds.

TerraForm Global has engaged Centerview Partners, Greentech Capital Advisors and AlixPartners as financial advisors and Sullivan & Cromwell LLP as its legal advisor.

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