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dydo

NRG Yield, Inc. (NYLD)

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dydo    1,391

Looks like NYLD may get competition for the SUNE assets.

Sent from my HTC One_M8 using Tapatalk

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dydo    1,391

NYLD completed its solar acquisition and issues new deck for Barclays conference. Based on current price of shares dividend would be at 7.8% . That implies 42% growth from $0.96 to $1.38 by end of 2018.  At the current rate that is $23, but I would say target goes up to $25 per share.

http://investor.nrgyield.com/phoenix.zhtml?c=251846&p=irol-EventDetails&EventId=5236704

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dydo    1,391

The participation in bids for utility assets have closed today, they have an auction on the 9th. I looked at the details those are actually utility size built projects, 684MW of wind and 1402MW of solar, both DC. In AC this is about 1.6GW. At $144M this is about $0.10 per watt. That is a steal if it happens. If SunEdison had 10% in equity at 1.70 this would be $0.51,

NRG Energy would be buying it at 20 cents on a dollar of equity. Great deal and I hope it happens. This would mean massive drop into NYLD. MYLD is already the largest yieldco with those projects in, NYLD will probably sell them with 100% gain of 20 cents versus 10 cents, or $288M plus debt, this would be easy gain and NYLD would have awesome assets.

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dydo    1,391

I found the announcement that NRG Renew is the successful bidder  and its purchase prevailed for all assets in this motion

"At the Sale Hearing to be held on September 15, 2016 at 10:00 a.m. (prevailing Eastern Time) before the Honorable Stuart M. Bernstein, in the United States Bankruptcy Court for the Southern District of New York, One Bowling Green, Courtroom 723, New York, New York 10004, the Debtors will seek entry of an order, approving the sale of all of the Equity Interests free and clear of all liens, claims, interests and encumbrances to NRG. "

I cannot know for sure this is a good as I thought originally, I have no doubt it is a great outcome for the industry. A public entity is taking on the projects, plants, etc. Creating work perhaps for CSIQ, FSLR, moving the bankruptcy into past and getting things to normal.

 

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explo    669

That's great news. If I remember correctly NRG is a decently but not super strong (financially) sponsor - not like NEE and BAM - so I hope they don't stretch it too much now (like SUNE and ABG did).

 

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dydo    1,391

Further study shows that NRG is buying Four Brothers and Three Cedars projects, those are coming according to Dominion this quarter, Quoting from Dominion filing is below and those are 530MWac operational in Utah. 231MW in Hawaii, also operational. 1.2GW as pure not started projects, including 683MW of wind.

Acquisitions of Four Brothers and Three Cedars
In June 2015, Dominion acquired 50% of the units in Four Brothers from SunEdison for $64 million of consideration, consisting of $2 million in cash and a $62 million payable. As of June 30, 2016, an $11 million payable is included in other current liabilities in Dominion’s Consolidated Balance Sheets. Four Brothers’ purpose is to develop and operate four solar projects located in Utah, which will produce and sell electricity and renewable energy credits. The projects are expected to cost approximately $730 million to construct, including the initial acquisition cost. Dominion is obligated to contribute $445
million of capital to fund the construction of the projects and has contributed $370 million through June 30, 2016. The facilities are expected to begin commercial operations by the end of the third quarter of 2016, with generating capacity of approximately 320 MW.
In September 2015, Dominion acquired 50% of the units in Three Cedars from SunEdison for $43 million of consideration, consisting of $6 million in cash and a $37 million payable. As of June 30, 2016, a $7 million payable is included in other current liabilities in Dominion’s Consolidated Balance Sheets. Three Cedars’ purpose is to develop and operate three solar projects located in Utah, which will produce and sell electricity and renewable energy credits. The projects are expected to cost approximately $425 million to construct. Dominion is obligated to contribute $276 million of capital to fund the
construction of the projects and has contributed $223 million through June 30, 2016. The facilities are expected to begin commercial operations by the end of the third quarter of 2016, with generating capacity of approximately 210 MW.
Long-term power purchase, interconnection and operation and maintenance agreements have been executed for both Four Brothers and Three Cedars. Dominion expects to claim 99% of the federal investment tax credits on the projects.
Dominion owns 50% of the voting interests in Four Brothers and Three Cedars and has a controlling financial interest over the entities through its rights to control operations. The allocation of the $64 million purchase price for Four Brothers resulted in $89 million of property, plant and equipment and $25 million of noncontrolling interest. The allocation of the $43 million purchase price for Three Cedars resulted in $65 million of property, plant and equipment
and $22 million of noncontrolling interest. The noncontrolling interest for each entity was measured at fair value using the discounted cash flow method, with the primary components of the valuation being future cash flows (both incoming and outgoing) and the discount rate. Dominion determined its discount
rate based on the cost of capital a utility-scale investor would expect, as well as the cost of capital an individual project developer could achieve via a combination of non-recourse project financing and outside equity partners. The acquired assets of Four Brothers and Three Cedars are included in the Dominion Generation operating segment.
Dominion has assumed the majority of the agreements to provide administrative and support services in connection with construction of the projects, operations and maintenance of the facilities and technical management services of the solar facilities. Costs related to services to be provided under these agreements were immaterial for the six months ended June 30, 2016. Subsequent to Dominion’s acquisition of Four Brothers and Three Cedars through June 30, 2016, SunEdison made contributions to Four Brothers and Three Cedars of $265 million in aggregate, which are reflected as noncontrolling interests
in Dominion’s Consolidated Balance Sheets.

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dydo    1,391

Owned by SunEdison and sold for pennies, NRG has signed new PPAs with Hawaiian Electric. NRG is putting SUNEQ projects to work. Good news for NYLD and its ROFO.

https://www.hawaiianelectric.com/nrg-and-hawaiian-electric-reach-new-power-purchase-agreements-to-revive-major-solar-projects-on-oahu#.WJFHb5bYhcs.linkedin

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dydo    1,391

Travis came unglued. LOL. They are losing a residential business, which supposedly is going to make SunPower rich according to Travis. NRG Energy is going big on commercial and utility scale.

https://www.fool.com/investing/2017/02/21/how-a-major-utility-fell-on-its-face-in-renewable.aspx?yptr=yahoo

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