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SEC Filings

10-K
TERRAFORM GLOBAL, INC. filed this Form 10-K on 06/15/2017
Entire Document
 

We continue to focus on satisfying the conditions to the closing of the Brookfield Transaction under the Merger Agreement and executing our other near term plans and priorities, including:
focusing on the performance and efficiency of our existing portfolio of power plants;
mitigating, to the extent possible, the adverse impacts resulting from the SunEdison Bankruptcy, including ensuring the continuity of operation, maintenance and asset management of our power plants;
resolving our material pending litigation;
working with our project level lenders to cure, or obtain waivers or forbearance of, defaults that have arisen under certain of our project level debt financings as a result of the SunEdison Bankruptcy;
resolving the pending commitment to acquire three operating power plants from BioTherm (as defined below); and
seeking to optimize our portfolio and capital structure by financing or refinancing certain power plants and/or exiting certain markets or selling certain assets if we believe the opportunity would improve stockholder value.

If we are unable to successfully complete the Brookfield Transaction, it would be necessary for the Company to reevaluate its strategic alternatives. If such reevaluation does not result in the Company entering into an alternative transaction, we expect to pursue our long-term business, which is to own and operate our portfolio of renewable energy power plants, pursue growth opportunities and pay cash dividends to our stockholders.
Our Portfolio
Our portfolio consists of solar and wind power plants located in Brazil, China, India, Malaysia, South Africa, Thailand, and Uruguay with an aggregate net capacity (based on our share of economic ownership) of 919.0 MW as of May 31, 2017. These power plants generally have long-term Power Purchase Agreements (“PPAs”) with creditworthy counterparties. Our current portfolio has PPAs with a weighted average (based on net capacity according to share of economic ownership) remaining life of 17 years as of May 31, 2017. For the years ended December 31, 2016, 2015 and 2014, solar energy represented 55%, 75% and 100% of our consolidated operating revenues, net for the respective periods, and wind energy represented 45% and 25% of our consolidated operating revenues, net for the years ended December 31, 2016 and 2015, respectively.
Subject to market and other conditions, our long-term plan is to further expand and diversify our current portfolio by acquiring utility-scale and distributed assets located in our core markets and certain other jurisdictions, each of which we expect will also have a long-term PPA with a creditworthy counterparty. However, as discussed under Item 1. Business - Recent Developments - SunEdison Bankruptcy below, in connection with the Brookfield Transaction, we entered into a Settlement Agreement (as defined below) with SunEdison to resolve our outstanding intercompany claims and defenses in connection with the SunEdison Bankruptcy, and the Settlement Agreement has been approved by the bankruptcy court overseeing the SunEdison Bankruptcy. If the Settlement Agreement becomes effective, our existing rights to acquire certain projects from SunEdison will be terminated. Even if such rights are not terminated, as a result of the SunEdison Bankruptcy, we do not expect to acquire any additional projects from SunEdison. In addition, recent market conditions affecting companies in our sector generally have limited our ability to acquire and finance projects at attractive returns, so our ability to complete acquisitions on attractive terms or at all may be limited.



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