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.
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Mar 10 - Mar 12, 2021
Penang, Malaysia (also available virtually)
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Feb 03 - Feb 04, 2021
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.