|
|
(State or Other Jurisdiction of Incorporation)
|
(I.R.S. Employer Identification Number)
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Address of Principal Executive Offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading Symbol
|
Name of each exchange on which registered
|
|
|
|
Exhibit
Number
|
Description
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL).
|
Date: October 3, 2019
|
TerraForm Power, Inc.
|
|
By:
|
/s/ William Fyfe
|
|
William Fyfe
|
||
General Counsel
|
(In thousands, except per share data)
|
TerraForm Power
note 5(k)(1)
|
Saeta (IFRS)
note 5(k)(2)
|
Pro Forma
Adjustments
|
Notes
|
Pro Forma
Combined
|
|||||||||||||
Operating revenues, net
|
$
|
766,570
|
$
|
184,422
|
$
|
—
|
$
|
950,992
|
||||||||||
Operating costs and expenses:
|
||||||||||||||||||
Cost of operations
|
220,907
|
57,416
|
—
|
278,323
|
||||||||||||||
General and administrative expenses
|
103,961
|
3,351
|
—
|
107,312
|
||||||||||||||
Acquisition and related costs
|
14,646
|
—
|
(14,686
|
)
|
5g
|
(40
|
)
|
|||||||||||
Impairment of renewable energy facilities
|
15,240
|
—
|
—
|
15,240
|
||||||||||||||
Depreciation, accretion and amortization expense
|
341,837
|
66,100
|
17,773
|
5e
|
425,710
|
|||||||||||||
Total operating costs and expenses
|
696,591
|
126,867
|
3,087
|
826,545
|
||||||||||||||
Operating income (loss)
|
69,979
|
57,555
|
(3,087
|
)
|
124,447
|
|||||||||||||
Other expenses:
|
||||||||||||||||||
Interest expense, net
|
249,211
|
37,363
|
8,570
|
5f
|
286,574
|
|||||||||||||
Loss on extinguishment of debt, net
|
1,480
|
—
|
—
|
1,480
|
||||||||||||||
Gain on foreign currency exchange, net
|
(10,993
|
)
|
(868
|
)
|
—
|
(11,861
|
)
|
|||||||||||
Other expenses, net
|
(4,102
|
)
|
—
|
—
|
4,468
|
|||||||||||||
Total other expenses, net
|
235,596
|
36,495
|
8,570
|
280,661
|
||||||||||||||
(Loss) income before income tax expense (benefit)
|
(165,617
|
)
|
21,060
|
(11,657
|
)
|
(156,214
|
)
|
|||||||||||
Income tax (benefit) expense
|
(12,290
|
)
|
4,422
|
(4,443
|
)
|
5h
|
(12,311
|
)
|
||||||||||
Net (loss) income
|
(153,327
|
)
|
16,638
|
(7,214
|
)
|
(143,903
|
)
|
|||||||||||
Less: Net loss attributable to redeemable non-controlling interests
|
9,209
|
—
|
—
|
9,209
|
||||||||||||||
Less: Net loss attributable to non-controlling interests
|
(174,916
|
)
|
—
|
—
|
(174,916
|
)
|
||||||||||||
Net income (loss) attributable to Class A common stockholders
|
$
|
12,380
|
$
|
16,638
|
$
|
(7,214
|
)
|
$
|
21,804
|
|||||||||
Weighted average number of shares:
|
||||||||||||||||||
Class A common stock – Basic & Diluted
|
182,239
|
|
209,142
|
|||||||||||||||
Earnings per share:
|
||||||||||||||||||
Class A common stock - Basic and diluted
|
$
|
0.07
|
|
|
$
|
0.10
|
Average daily closing exchange rate for the year ended December 31, 2018:
|
US$1.1783/€1
|
• |
$650 million equity offering private placement to affiliates of Brookfield;
|
• |
$471 million financed with available liquidity, including (i) the proceeds of a $30 million draw on its sponsor line of credit agreement, dated as of October 16,
2017, between the Company and Brookfield and its affiliate, (ii) a $359 million drawn on the Company’s corporate revolving credit facility, and (iii) approximately $82 million of cash on hand.
|
In thousands
|
Saeta as of June 12, 2018
|
||
Purchase consideration
|
$
|
1,113,784
|
|
Fair value of 4.72% redeemable non-controlling interest
|
55,118
|
||
Total purchase consideration
|
1,168,902
|
||
Book value of Saeta’s net assets (US GAAP)
|
699,704
|
||
Fair value adjustment to intangible assets and property, plant and equipment
|
506,293
|
||
Fair value adjustment to other assets and liabilities, net
|
4,605
|
||
Fair value adjustment to asset retirement obligations
|
(52,152
|
)
|
|
Fair value adjustment to long-term debt
|
(46,808
|
)
|
|
Net deferred tax liabilities resulted from fair value adjustments
|
(98,131
|
)
|
|
Fair value of Saeta’s net assets
|
1,013,511
|
||
Goodwill
|
$
|
155,391
|
For the year ended December 31, 2018
In thousands
|
||||||||
Pro forma adjustment
|
Adjustment to
pre-tax net income
|
Adjustment to
income tax expense
|
||||||
5g. Transaction costs
|
$
|
14,686
|
$
|
—
|
||||
5e. Purchase price allocation
|
(17,773
|
)
|
(4,443
|
)
|
||||
5f. Financing of the Acquisition
|
(8,570
|
)
|
—
|
|||||
$
|
(11,657
|
)
|
$
|
(4,443
|
)
|
In thousands, except per share data
|
TerraForm Power
Historical
|
Saeta
IFRS
|
Pro Forma
Adjustments
|
Pro Forma
Combined
|
||||||||||||
Net income (loss) attributable to Class A common stockholders
|
$
|
12,380
|
$
|
16,638
|
$
|
(7,214
|
)
|
$
|
21,804
|
|||||||
Weighted average basic and diluted Class A shares outstanding
|
148,166
|
60,976
|
209,142
|
|||||||||||||
Basic and diluted earnings per share
|
$
|
0.08
|
$
|
0.02
|
$
|
0.10
|
Year ended December 31, 2018
(In thousands)
|
TerraForm Power
Historical
|
Saeta Historical
IFRS (USD)
|
Reclassification
|
TerraForm
Power
Historical
|
Saeta
IFRS (USD)
|
Historical Saeta and
TerraForm Power
|
||||||||||||||||||
Revenue
|
$
|
—
|
$
|
178,445
|
$
|
(178,445
|
)
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||||||
Other operating income
|
—
|
5,977
|
(5,977
|
)
|
—
|
—
|
—
|
|||||||||||||||||
Operating revenues, net
|
766,570
|
—
|
184,422
|
766,570
|
184,422
|
950,992
|
||||||||||||||||||
Operating costs and expenses:
|
||||||||||||||||||||||||
Cost of materials used and other external expenses
|
—
|
45
|
(45
|
)
|
—
|
—
|
—
|
|||||||||||||||||
Staff costs
|
—
|
3,351
|
(3,351
|
)
|
—
|
—
|
—
|
|||||||||||||||||
Other operating expenses
|
—
|
57,371
|
(57,371
|
)
|
—
|
—
|
—
|
|||||||||||||||||
Cost of operations
|
220,907
|
—
|
57,416
|
220,907
|
57,416
|
278,323
|
||||||||||||||||||
General and administrative expenses
|
87,722
|
—
|
19,590
|
103,961
|
3,351
|
107,312
|
||||||||||||||||||
General and administrative expenses - affiliate
|
16,239
|
—
|
(16,239
|
)
|
—
|
—
|
—
|
|||||||||||||||||
Acquisition and related costs
|
14,646
|
—
|
—
|
14,646
|
—
|
14,646
|
||||||||||||||||||
Impairment of renewable energy facilities
|
15,240
|
—
|
—
|
15,240
|
—
|
15,240
|
||||||||||||||||||
Depreciation, accretion and amortization
|
341,837
|
66,100
|
—
|
341,837
|
66,100
|
407,937
|
||||||||||||||||||
Total operating costs and expenses
|
696,591
|
126,867
|
—
|
696,591
|
126,867
|
823,458
|
||||||||||||||||||
Operating (loss) income
|
69,979
|
57,555
|
—
|
69,979
|
57,555
|
127,534
|
||||||||||||||||||
Other expenses (income):
|
||||||||||||||||||||||||
Finance income
|
—
|
(639
|
)
|
639
|
—
|
—
|
—
|
|||||||||||||||||
Finance costs
|
—
|
38,002
|
(38,002
|
)
|
—
|
—
|
—
|
|||||||||||||||||
Interest expense, net
|
249,211
|
—
|
37,363
|
249,211
|
37,363
|
286,574
|
||||||||||||||||||
Loss on extinguishment of debt, net
|
1,480
|
—
|
—
|
1,480
|
—
|
1,480
|
||||||||||||||||||
(Gain) loss on foreign currency exchange, net
|
(10,993
|
)
|
(868
|
)
|
—
|
(10,993
|
)
|
(868
|
)
|
(11,861
|
)
|
|||||||||||||
Other income, net
|
(4,102
|
)
|
—
|
—
|
(4,102
|
)
|
—
|
(4,102
|
)
|
|||||||||||||||
Total other expenses, net
|
235,596
|
36,495
|
—
|
235,596
|
36,495
|
272,091
|
||||||||||||||||||
(Loss) income before income tax (benefit) expense
|
(165,617
|
)
|
21,060
|
—
|
(165,617
|
)
|
21,060
|
(144,557
|
)
|
|||||||||||||||
Income tax (benefit) expense
|
(12,290
|
)
|
4,422
|
—
|
(12,290
|
)
|
4,422
|
(7,868
|
)
|
|||||||||||||||
Net (loss) income
|
(153,327
|
)
|
16,638
|
—
|
(153,327
|
)
|
16,638
|
(136,689
|
)
|
|||||||||||||||
Less: Net income attributable to redeemable non-controlling interests
|
9,209
|
—
|
—
|
9,209
|
—
|
9,209
|
||||||||||||||||||
Less: Net loss attributable to non-controlling interests
|
(174,916
|
)
|
—
|
—
|
(174,916
|
)
|
—
|
(174,916
|
)
|
|||||||||||||||
Net income attributable to common stockholders
|
$
|
12,380
|
$
|
16,638
|
$
|
—
|
$
|
12,380
|
$
|
16,638
|
$
|
29,018
|