SunEdison has completed the second phase of its transaction to acquire a 33% ownership interest in a 567MW DC solar portfolio from Dominion. The company acquired a 33% interest in the remaining 231MW portion of Dominion's 567MW portfolio of solar power plants for $117 million.
At the same time, Terra Nova Renewable Partners, the strategic equity partnership formed between SunEdison and institutional investors advised by J.P. Morgan Asset Management – Global Real Assets, acquired SunEdison's interest in the transaction from SunEdison for the same price. Terra Nova now owns the 33 percent interest in Dominion's 567 megawatt DC portfolio of solar power plants acquired through the consummation of both phases of the transaction.
Terra Nova, through an indirect subsidiary, has the option to buy the remaining 67% of the portfolio when certain trigger events occur. This completes the two phases of the Dominion transaction announced in September 2015.
SunEdison has the option to repurchase the projects from the partnership for a period of five years and may assign TerraForm Power, Inc., a global owner and operator of clean energy power plants, call rights to the projects should they be repurchased. Any projects not repurchased by SunEdison would continue to be owned by the partnership.
"We are pleased that the Terra Nova partnership has invested in Dominion's diverse, domestic portfolio of solar assets," said Brian Wuebbels, SunEdison's chief financial officer. "With Terra Nova acquiring the assets, we retain an option to acquire high quality contracted cash flows in the future."
The 567MW solar portfolio consists of 24 projects which are located in Indiana, Georgia, Connecticut, California, Tennessee, and Utah. This second phase of the transaction is for nine of those projects. The solar portfolio's total power output has been contracted with industry leading utilities and power offtakers and has a weighted remaining contract term of 19.8 years.