Canadian Solar has closed on the purchase of three operating solar projects totaling 59.8 MWac from KKR. The total approximate enterprise value of this transaction is C$270 Million (USD$203.7 Million). In conjunction with this acquisition, Canadian Solar also closed a USD$50 Million loan with Credit Suisse, who also acted as sole financial advisor on the transaction.
The projects are located in Sault Ste. Marie, Ontario and hold long-term fixed-price contracts established pursuant to Renewable Energy Standard Offer Program. Canadian Solar plans to assume the roles of both the owner and operator of the projects, which have been connected to the grid from October 2010 to November 2011. In addition, term financing will be provided by Norddeutsche Landesbank Girozentrale, New York Branch and KfW-IPEX Bank, assumed as part of the acquisition.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, commented, "These projects will help round out our Canadian portfolio and are part of our strategy to own and operate projects. This acquisition demonstrates Canadian Solar's ongoing investment and dedication to solar, as well as staying true to our strategy. We look forward to future transactions with KKR in North America."