In the event the First Wind acquisition is not completed, TerraForm Power intends to use the net proceeds of this offering for general corporate purposes.
Select SEC filings:
In order to retain favorable tax benefits and steady yields, the yieldco business model calls for acquisition of new generation assets as initial portfolio assets approach their contract expirations. This pipeline of assets, or "drop downs," is intended to fuel the yieldco with stable cash flows to deliver above-average dividend growth with below average risk . This drop-down schedule is critical to maintaining cash-flows and beneficial tax treatment and subsequently, is essential to the yieldcos future growth and viability as a long-term financing structure. To reduce the uncertainty of future cash flows and ensure access to assets, agreements such as right of first offer or call rights are common between the yieldco and the parent company. Yieldcos can continue to schedule drop downs for as long as the company wishes to maintain its tax advantaged status and sufficient supply of new operating assets exist  or until the business strategy dictates otherwise.