TerraForm Power Inc (TERP) Q1 2021 Earnings Call Transcript

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TerraForm Power Inc (TERP)
Q1 2021 Earnings Call
May 18, 2021, 8:30 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good day, ladies and gentlemen, and welcome to the TerraForm Power Operating LLC First Quarter 2021 Results Webcast and Conference Call. As a reminder, this conference is to being recorded.

I would now like to turn the call over to Michael Tebbutt, Chief Financial Officer. You may begin.

Michael Tebbutt -- Chief Financial Officer

Thank you, operator. Good morning, everyone, and thank you for joining us for our 2021 first quarter results conference call and webcast for TerraForm Power Operating, LLC. Before we begin, I'd like to remind you that a copy of the Q1 financial statements is published on our website and can be found under the Financials and Filings page at terraformpower.com.

Note, also that we may make forward-looking statements on this call. These forward-looking statements are subject to known and unknown risks and our actual results may differ materially. In addition, we refer to non-GAAP financial measures. For more information on a reconciliation of these non-GAAP measures to comparable GAAP measures, please refer to our Q1 financial statements.

Our business performed well in the first quarter of 2021, supported by strong asset availability and a healthy balance sheet. From a financial perspective, TerraForm Power had adjusted EBITDA of over $184 million in the first quarter of 2021, which was in line with the prior year as we continue to generate stable revenues and benefit from the diversification of our fleet and highly contracted cash flows with long duration power purchase agreements.

There was a severe winter weather in the quarter, in particular in Texas. The conditions did not have a material impact on our financial results due to our operating and power marketing capabilities, which reacted to mitigate risk. We are proud of how our teams performed during these difficult times keeping our employees safe and our operations running.

We continue to progress at two wind repowering projects in the State of New York, with the nameplate capacity of 160 megawatts with construction financing and tax equity secured for both projects. Construction teams are on-site finalizing civil works, and we are on track to commence repowering all turbines in the second quarter and remain on track to reach completion of the project by the end of 2021 on scope and budget.

Turning to our debt and liquidity. Our financial position remains healthy at the end of the first quarter. We had approximately $643 million of corporate liquidity available to fund our capital requirements. Overall, 91% of our total debt is fixed or swapped debt, and we continue to have a very manageable corporate debt stack with no near-term maturities.

Driven by a favorable regulatory outcome in Spain for our CSP assets, execution of a number of operational priorities, the low interest rate environment and strong bank demand for financing renewable power assets, we see a meaningful opportunity to further optimize leverage across our business.

Looking ahead, we will continue to execute our key operational priorities, including maintaining a robust balance sheet, optimizing project level financings and surfacing value through enhanced cash flows from our existing portfolio.

That concludes our remarks for today. If you have any questions, please don't hesitate to contact our Investor Relations team at [email protected]. Thank you for joining us today.

Operator

[Operator Closing Remarks]

Questions and Answers:

Duration: 4 minutes

Call participants:

Michael Tebbutt -- Chief Financial Officer

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