Greentech Advises


Greentech Advises Atlantica Yield on its Strategic Partnership with Algonquin
March 1, 2018

Greentech Capital Advisors is pleased to announce the following transaction:
Exclusive financial advisor on its strategic partnership with

$608,000,000March 2018

*

CLIENT OVERVIEW

Atlantica Yield plc (NASDAQ: ABY) is a total return company that owns a diversified portfolio of contracted renewable energy, power generation, electric transmission and water assets in North & South America, and certain markets in Europe, the Middle East, and Africa.

Atlantica Yield owns, manages and acquires a diversified portfolio of contracted assets in the power and environment sectors. Atlantica Yield operates high-quality facilities recently constructed, with long useful lives. Atlantica Yield’s long-term contracts with creditworthy counterparties permit the company to generate stable and long-term cash-flows. Atlantica Yield currently owns 21 assets, comprising 1,442 MW of renewable energy generation, 300 MW of conventional power generation, 1,099 miles of electric transmission lines and 10.5 Mft3 per day of water assets. All of Atlantica Yield’s assets have contracted revenues (regulated revenues in the case of the company’s Spanish assets) with high-quality off-takers. Over 95% of Atlantica Yield’s cash available for distribution is generated from assets with off-takers with an investment-grade rating, the remaining being unrated. Atlantica Yield’s assets have a weighted average remaining contract life of approximately 21 years as of December 31, 2016. Atlantica Yield’s portfolio is diversified both by business segment and geography. By geography, Atlantica Yield is present in North & South America, and certain markets in EMEA. Atlantica Yield targets to distribute a very high percentage of cash available for distribution and will seek to increase such cash dividends over time through the acquisition of additional contracted assets.

* Mandated through Greentech Capital Advisors Securities, LLC

TRANSACTION OVERVIEW

  • Algonquin Power & Utilities Corp. has reached an agreement to purchase a 25% interest in Atlantica Yield from Abengoa at a price of $24.25 per share, $2,430 million implied total equity value
  • Proposed ROFO agreement with AAGES, a joint vehicle to be created by Algonquin and Abengoa to invest in the development and construction of clean energy and water infrastructure contracted assets
  • Agreement to periodically discuss the purchase of assets from Algonquin
  • Proposed opportunity for Algonquin to provide, through the subscription of ordinary shares of Atlantica, incremental equity of $100 million for the acquisition of new assets by Atlantica and certain preferred rights for further capital increases up to 41.5%

Greentech Capital Advisors acted as exclusive financial advisor to the board of directors of Atlantica Yield.

“We are very pleased to share with you today our partnership with Algonquin,” said Santiago Seage, CEO of Atlantica Yield. “We believe that this transaction will open a new chapter for Atlantica Yield. Having a new industrial, North American shareholder, partner and sponsor like Algonquin is ideal for Atlantica at this stage. Additionally, the ROFO agreement we announce today should drive our growth going forward.”

For additional information about this transaction, please contact:

Jeff McDermott
Managing Partner
+1 (212) 946-3940
jeff@greentechcapital.com

PJ Deschenes
Partner
+1 (212) 946-3362
pjdeschenes@greentechcapital.com

Frank Nicklaus
Principal
+1 (212) 946-3372
fnicklaus@greentechcapital.com

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