SunEdison, Inc. has closed the second part of a deal with Dominion, first announced in September, to acquire a 33% stake in the power companys 567 MW solar PV portfolio, comprised of 24 projects located in Indiana, Georgia, Connecticut, California, Tennessee, and Utah. The company paid US$117 million for the remaining 231 MW.
It simultaneously sold the 231 MW portfolio to Terra Nova for the same amount. Terra Nova, a strategic equity partnership formed between SunEdison and institutional investors advised by J.P. Morgan Asset Management – Global Real Assets, already acquired a 33% stake in the other 336 MW in December for $180 million, plus a working capital adjustment.
The partnership has the option to buy the remaining 67% of the portfolio "when certain trigger events occur," said SunEdison, adding that it also has the option to repurchase the projects from Terra Nova over the next five years, and may assign call rights to them to yieldco, TerraForm Power, Inc.
"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."
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