Fitch Publishes Findings on U.S. Renewables M&A

NEW YORK--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: U.S. Renewable Energy M&A Dashboard (September 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=871404

Fitch Ratings has published a dashboard discussing the merger and acquisition (M&A) activities for the U.S. renewables projects.

A surge in renewable M&A activity has been fueled by the advent of yield-type vehicle in recent years as well as several utility parent holding companies looking to expand their contracted portfolio. 2015 has seen the most robust deal flow and solar transactions have surpassed wind. Though valuations vary, EV/EBITDA multiples for wind projects have typically been in the 9x-11x range, while solar transactions have fetched above 12x. Most yieldco transactions imply a cash available for distribution yield of 8%-10%.

In Fitch's view, the ongoing contraction in yieldco equity valuations is likely to force a recalibration regarding cost of capital, inducing a greater discipline in M&A transactions.

The dashboard is available at 'www.fitchratings.com' or by clicking the link above.

Additional information is available at 'www.fitchratings.com'.

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View source version on businesswire.com: http://www.businesswire.com/news/home/20150930006527/en/

Fitch Ratings
Julie Jiang, +1-212-908-0708
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Shalini Mahajan, +1-212-908-0351
Managing Director
or
Media Relations
Alyssa Castelli, +1-212-908-0540
[email protected]

Source: Fitch Ratings

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