SunEdison and its partnership with Terra Nova Renewable Partners, an institutional investors advised by J.P. Morgan Asset Management – Global Real Assets, announced to purchase 33% stake in 15 operating solar projects totaling 253MWac (336MWdc ) from Dominion for an equity purchase price of US$ 180 million plus a working capital adjustment.
The acquisition will be completely closed within two phases. The second phase is expected to close by early 2016 by Terra Nova for approximately US$120 million plus working capital and certain other adjustments. The ownership interest to be transacted will be same to the first phase, 33%, and nine projects in three states totaling 172MWac of generating capacity will be sold. Dominion expects to pay down debt with the cash proceeds.
The portfolio that are, and to be, transacted will be consisting 24 projects across six states with a total capacity of 567MWdc. The portfolio has already contracted with utilities and power offtakers to sell the power generations.
J.P. Morgan’s clients will be able to provide equity to purchase renewable energy projects developed or purchased by SunEdison through the partnership. Remaining project costs are expected to be funded with a combination of limited-recourse commercial bank debt and tax equity. Yet SunEdison still has the option to buy the assets held by the partnership within five years. The partnership has the option to purchase Dominion’s remaining 67% interest upon the occurrence of “certain triggering events”, through an indirect subsidiary, as well.
SunEdison has sold or transferred 633MWac of wind portfolio and 336MWdc of solar assets to the partnership to date.