Brookfield Renewable Energy Partners (BEP) Increases Ownership Stake in TerraForm Power (TERP)

June 11, 2018 4:31 PM EDT

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Brookfield Renewable Partners L.P. (NYSE: BEP) today announced that, together with its institutional partners, they have acquired an additional 61 million shares of TerraForm Power (NASDAQ: TERP) through a private placement for a total consideration of $650 million, increasing their aggregate interest in TerraForm Power to 65% from 51% at a price of $10.66 per share of Class A common stock.

Brookfield Renewable’s total commitment of $420 million increases its interest in TerraForm Power to 30%, which it will fund through available liquidity. This incremental investment is expected to be immediately accretive to Brookfield Renewable unitholders, contributing approximately $80 million to Brookfield Renewable’s FFO on a run-rate basis.

This investment increases Brookfield Renewable’s exposure to the rapidly growing solar and wind sectors through its higher ownership interest in TerraForm Power, and through TerraForm Power’s announced acquisition of Saeta Yield – a leading, 1,028 megawatt European solar and wind portfolio, which is expected to close on June 12, 2018. With this acquisition, we continue to advance TerraForm Power’s position as a leading owner and operator of solar and wind assets in developed markets around the world.

“We have been extremely pleased with TerraForm Power’s performance to date as it makes excellent progress in advancing its business plan to enhance cash flows through organic growth and de-leveraging of its balance sheet,” said Sachin Shah, CEO of Brookfield Renewable. “Most importantly, within four months of our initial investment, TerraForm Power has created meaningful value for all investors as it continues to pursue high-quality solar and wind opportunities in Western Europe and North America.”

Brookfield Renewable Partners

Brookfield Renewable Partners operates one of the world’s largest publicly traded, pure-play renewable power platforms. Our portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, and totals over 17,000 megawatts of installed capacity and an 8,000 megawatt development pipeline. Brookfield Renewable is listed on the New York and Toronto stock exchanges.

Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a leading global alternative asset manager with over US$285 billion of assets under management.

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