Case Studies


AltaGas’s Sale of Distributed Generation Asset Portfolio to TerraForm Power

TRANSACTION OVERVIEW

  • On July 22, 2019, AltaGas Ltd. (“AltaGas”) announced that it entered into a definitive agreement for the sale of its 322 MW portfolio of U.S. distributed generation assets held by its subsidiary WGL Energy Systems, Inc. (“WGL”) to TerraForm Power, Inc. (“TerraForm Power”), a publicly traded owner and operator of solar and wind assets in North America and Western Europe

ALTAGAS OVERVIEW

  • AltaGas Ltd. is a leading North American energy infrastructure company with a focus on regulated utilities, midstream and power and is listed on the Toronto Stock Exchange (TSX: ALA)
  • WGL Energy Systems, Inc., a wholly owned subsidiary of AltaGas, was acquired in July 2018 and brought with it a diversified set of assets and operations across utilities, midstream and power, including but not limited to distributed solar generation and fuel cell assets
  • The platform AltaGas sold consists of 322 MW of contracted distributed generation assets located in 20 states and in the District of Columbia. Included in the portfolio are 291 MW of commercial & industrial solar, 10 MW of fuel cells and 21 MW of residential solar. The portfolio is comprised of assets with an average age of 3.5 years that have power purchase agreements with an average investment grade credit rating of A+/A2 and an average remaining term of over 17 years

TERRAFORM POWER OVERVIEW

  • TerraForm Power owns and operates a renewable power portfolio of solar and wind assets located primarily in the U.S. and E.U., totaling more than 4,000 MW of installed capacity. TerraForm Power is listed on the Nasdaq Stock Market (Nasdaq: TERP)
  • TerraForm Power is sponsored by Brookfield Asset Management, a leading global alternative asset manager with more than $500 billion of assets under management

GREENTECH’S ROLE

  • Greentech served as financial advisor to AltaGas and was intimately involved in every aspect of the transaction
  • Greentech leveraged its unique market knowledge to work closely with the AltaGas and WGL management team to position the platform and portfolio to potential buyers
  • Greentech executed a competitive process, supported bidders in their diligence of a large and complex portfolio and worked to structure the optimal transaction to meet shareholder objectives

WHAT THE TRANSACTION MEANS
FOR THE SECTOR

  • Over 80 NDAs signed and 25 bids received, demonstrating strong investor interest in distributed generation
  • Process was pre-empted in the second round by a party willing to expedite a transaction
  • Transaction illustrated investor willingness to bid aggressively to gain access to unique asset portfolios, but also the growing importance and value recognition of being closer to large power consumers

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