US Solar Fund raised US$200 million at its IPO on the London Stock Exchange in April 2019. Source: Flickr, Elias Gayles
US Solar Fund has bought a 177MWdc portfolio of 22 operating utility-scale power projects in North Carolina, Oregon and California from Heelstone Renewable Energy.
The power projects started operations between 2016 and 2018 and sell their electricity output to a variety of investment-grade off-takers under fixed-term long-term power purchase agreements (PPA), US Solar Fund said in a press release.
The average remaining term of all the PPAs is 12 years.
The London-listed investment company, which raised US$200 million in its initial public offering (IPO) in April 2019, said it will use available cash to fund the equity purchase price for acquisition.
It said that the projects will generate revenue for US Solar Fund immediately upon acquisition close, which is expected in early February.
The latest deal, together with the three previously announced transactions, represents a total commitment of approximately 70% of the net IPO proceeds, according to US Solar Fund.
The firm will put the remaining 30% of proceeds towards refinancing the existing project-level debt with a new, smaller debt facility on "more attractive terms".
Following that refinancing, US Solar Fund will be "fully committed and substantially invested".
The company also said it will consider raising additional equity capital for the refinancing in order to enhance returns and fund more acquisitions.
The purchase brings US Solar Fund’s total utility-scale solar asset count to 37 sites totalling 380MWdc, according to a statement by company chairman Gillian Nott.
The prospects and challenges of solar's new era in the US will take centre stage at Solar Media's Large Scale Solar USA, scheduled to take place in Austin (Texas) on 23-24 June 2020.
Leading ‘Solar Module Super League’ supplier, JinkoSolar has teamed with experts from TÜV NORD and Soltec to provide as usual a technically driven PV Tech ‘TechTalk’ series webinar to further understand the Tiger PRO modules impact on LCOE metrics. Register free now.
PV Tech is hosting a TechTalk Product Series webinar with LONGi Solar to help PV project developers, asset owners and interested parties become aware of the latest in utility-scale PV panel technology, performance and size that is redefining LCOE metrics.
The business of solar is changing, as the industry scales up, technology, IT and new players to the market will add complexity. This sparks a host of opportunities such as co-location of solar and storage and the rise of unsubsidised solar projects as well as challenges which will question the very business model of European solar asset owners. Solar Finance & Investment Europe is the meeting place for institutional investors, sovereign wealth funds, solar, wind and storage funds and large energy buyers to do business.
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2020 for its 7th edition!
Understand fully the technical and logistical supply chains that determine the production and performance of solar modules, including all related factors impacting quality, reliability & bankability.