8point3 Energy Partners announced that it has entered into an agreement to acquire SunPower's 49% stake in its 102MW Henrietta solar project for $134 million.
"Our acquisition of SunPower's 49% minority interest in Henrietta further re-enforces our long-term strategy of adding high quality solar projects from our sponsors, with investment grade off-takers, to our portfolio," said Chuck Boynton, CEO of 8point3 Energy Partners. "With the expected acquisition of Henrietta, our portfolio will grow to interests in 637-MW of solar projects."
The acquisition is expected to generate approximately $10.9 million in annual cash distributions and has a 20 year contract life.
The transaction is subject to a financing condition and other customary closing conditions and is expected to close on or about September 30, 2016. The partnership expects to fund the acquisition through some combination of cash on hand, borrowings under its existing credit facility and the issuance of additional equity.
Located in California's San Luis Valley, the Henrietta project will commence operations in October 2016. The project is majority owned by Southern Company. Pacific Gas and Electric is purchasing the power generated by the project under a 20 year power purchase agreement.
3.5% increase in quarterly distribution
8point3 Energy Partners’ Board of Directors declared a cash distribution for its Class A shares of $0.2406 per share for the third quarter of 2016 on September 19. This represents an increase of approximately 14.7% over the minimum quarterly distribution and an increase of 3.5% over the previous quarter's distribution of $0.2325 per share.