PRINCETON, N.J.--(BUSINESS WIRE)--Aug. 12, 2014--
NRG Yield, Inc. (NYSE: NYLD) has completed its acquisition of the Alta
Wind facility located in Tehachapi, California from Terra-Gen Power LLC
for $870 million, plus the assumption of $1.6 billion of non-recourse
project financings and subject to customary working capital adjustments.
The acquisition, which totals 947 megawatts of operating wind capacity,
also includes a portfolio of land leases associated with the Alta Wind
facility.
“Completing this acquisition of North America’s largest wind facility
not only showcases our ability to compete for and close deals for
premier assets, it also underscores our commitment to carbon-free
generation that will help accelerate the movement to a clean energy
future,” said David Crane, NRG Yield’s Chairman and Chief Executive
Officer. “We welcome Alta Wind to our portfolio of contracted assets
that contribute to visible dividend growth for our investors while
supporting our sustainability goals by providing clean electricity from
wind generation for tens of thousands of American homes.”
Updating Financial Guidance1:
As a result of the completed acquisition, NRG Yield is raising its
full-year 2014 Adjusted EBITDA guidance to $455 million, from $410
million, and Cash Available for Distribution (CAFD) guidance to $145
million, from $140 million.
The Company is also reaffirming that the acquisition is expected by 2016
to increase both annual run-rate Adjusted EBITDA by approximately $220
million and CAFD by approximately $70 million (before debt service
associated with acquisition financing).
About NRG Yield
NRG Yield owns a diversified portfolio of contracted renewable,
conventional generation and thermal infrastructure assets in the U.S.,
including fossil fuel, solar and wind power generation facilities that
provide the capacity to support more than one million American homes and
businesses. Our thermal infrastructure assets provide steam, hot water
and/or chilled water, and in some instances electricity, to commercial
businesses, universities, hospitals and governmental units in multiple
locations. NRG Yield is traded on the New York Stock Exchange under the
symbol NYLD. Visit nrgyield.com for more information.
Safe Harbor Disclosure
This communication contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Forward-looking statements are
subject to certain risks, uncertainties and assumptions and typically
can be identified by the use of words such as “expect,” “estimate,”
“should,” “anticipate,” “forecast,” “plan,” “guidance,” “believe” and
similar terms. Such forward-looking statements include, but are not
limited to, statements about NRG Yield’s future revenues, income,
indebtedness, capital structure, strategy, plans, expectations,
objectives, projected financial performance and/or business results and
other future events, and views of economic and market conditions.
Although NRG Yield believes that the expectations are reasonable, it can
give no assurance that these expectations will prove to have been
correct, and actual results may vary materially. Factors that could
cause actual results to differ materially from those contemplated above
include, among others, general economic conditions, hazards customary in
the power industry, weather conditions, competition in wholesale power
markets, the volatility of energy and fuel prices, failure of customers
to perform under contracts, changes in the wholesale power markets,
changes in government regulation of markets and of environmental
emissions, the condition of capital markets generally, our ability to
access capital markets, unanticipated outages at our generation
facilities, adverse results in current and future litigation, failure of
NRG Energy, Inc. to ultimately offer assets to us that have been
identified eligible for acquisition, our ability to consummate future
acquisitions, our ability to enter into new contracts as existing
contracts expire, and our ability to maintain and grow our quarterly
dividends.
NRG Yield undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The foregoing review of factors that could
cause NRG Yield’s actual results to differ materially from those
contemplated in the forward-looking statements included in this news
release should be considered in connection with information regarding
risks and uncertainties that may affect NRG Yield’s future results
included in NRG Yield’s filings with the Securities and Exchange
Commission at www.sec.gov.
Appendix Table 1: Adjusted EBITDA and CAFD Guidance Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and
CAFD and provides a reconciliation to income before tax expense:
|
|
|
(dollars in millions)
|
|
|
2014 Full Year
|
|
Income before tax expense
|
|
|
117
|
|
Adjustments to net income to arrive at Adjusted
EBITDA:
|
|
|
|
|
Depreciation and amortization
|
|
|
131
|
|
Interest expense, net
|
|
|
157
|
|
Adjustment to reflect pro-rata Adjusted EBITDA
from
unconsolidated affiliates
|
|
|
50
|
|
Adjusted EBITDA
|
|
|
455
|
|
Pro-rata Adjusted EBITDA from unconsolidated
affiliates
|
|
|
(73)
|
|
Cash distributions from unconsolidated affiliates
|
|
|
43
|
|
Cash interest paid2
|
|
|
(131)
|
|
Maintenance capital expenditures
|
|
|
(17)
|
|
Change in other assets
|
|
|
(15)
|
|
Principal amortization of indebtedness2
|
|
|
(117)
|
|
Estimated Cash Available for Distribution
|
|
|
145
|
|
|
|
|
|
EBITDA and Adjusted EBITDA are non-GAAP financial measures. These
measurements are not recognized in accordance with GAAP and should not
be viewed as an alternative to GAAP measures of performance. The
presentation of Adjusted EBITDA should not be construed as an inference
that NRG Yield’s future results will be unaffected by unusual or
non-recurring items.
EBITDA represents net income before interest (including loss on debt
extinguishment), taxes, depreciation and amortization. EBITDA is
presented because NRG Yield considers it an important supplemental
measure of its performance and believes debt-holders frequently use
EBITDA to analyze operating performance and debt service capacity.
EBITDA has limitations as an analytical tool, and you should not
consider it in isolation, or as a substitute for analysis of our
operating results as reported under GAAP. Some of these limitations are:
-
EBITDA does not reflect cash expenditures, or future requirements for
capital expenditures, or contractual commitments;
-
EBITDA does not reflect changes in, or cash requirements for, working
capital needs;
-
EBITDA does not reflect the significant interest expense, or the cash
requirements necessary to service interest or principal payments, on
debt or cash income tax payments;
-
Although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized will often have to be replaced
in the future, and EBITDA does not reflect any cash requirements for
such replacements; and
-
Other companies in this industry may calculate EBITDA differently than
NRG Yield does, limiting its usefulness as a comparative measure.
Because of these limitations, EBITDA should not be considered as a
measure of discretionary cash available to use to invest in the growth
of NRG Yield’s business. NRG Yield compensates for these limitations by
relying primarily on our GAAP results and using EBITDA and Adjusted
EBITDA only supplementally. See the statements of cash flow included in
the financial statements that are a part of this news release.
Adjusted EBITDA is presented as a further supplemental measure of
operating performance. Adjusted EBITDA represents EBITDA adjusted for
mark-to-market gains or losses, asset write offs and impairments; and
factors which we do not consider indicative of future operating
performance. The reader is encouraged to evaluate each adjustment and
the reasons NRG Yield considers it appropriate for supplemental
analysis. As an analytical tool, Adjusted EBITDA is subject to all of
the limitations applicable to EBITDA. In addition, in evaluating
Adjusted EBITDA, the reader should be aware that in the future NRG Yield
may incur expenses similar to the adjustments in this news release.
Cash available for distribution is adjusted EBITDA plus cash dividends
from unconsolidated affiliates, less maintenance capital expenditures,
pro-rata adjusted EBITDA from unconsolidated affiliates, cash interest
paid, income taxes paid, principal amortization of indebtedness and
changes in others assets. Management believes cash available for
distribution is a relevant supplemental measure of NRG Yield’s ability
to earn and distribute cash returns to investors.
1 See Appendix Table 1 for Reg G reconciliation of Adjusted
EBITDA and CAFD guidance.
2 Cash interest paid and principal amortization of
indebtedness have been adjusted by $6.7 million and $1.7 million,
respectively, reflecting working capital adjustments for the purchase of
the Alta Wind facility.
Source: NRG Yield, Inc.
NRG Yield, Inc.
Media:
Karen Cleeve
609.524.4608
or
Investors:
Chad
Plotkin
609.524.4526
or
Daniel Keyes
609.524.4527
