Ormat Technologies sells 36.75% Equity Interest in the Second Phase of the Don A. Campbell Geothermal Power Plant

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Ormat Technologies sells 36.75% Equity Interest in the Second Phase of the Don A. Campbell Geothermal Power Plant

Ormat Technologies has announced that its wholly-owned subsidiary, Ormat Nevada, closed a follow-on equity transaction with Northleaf Capital Partners.

Northleaf purchased a 36.75% equity interest in the second phase of the Don A. Campbell power plant for a purchase price of US$44.2 million.

The 20.5 MW second phase of the Don A. Campbell geothermal power plant commenced operation in September 2015 and sells its electricity to Southern California Public Power Authority (SCPPA) under a 20-year Power Purchase Agreement. Under the terms of the PPA with SCPPA, the project will receive a rate of US$81.25 per megawatt hour with no annual escalation. SCPPA will resell the power to Los Angeles Department of Water and Power (LADWP).

Following the closing, the power plant was contributed to the existing ORPD joint venture, as agreed upon under the terms of ORPD's limited liability company agreement executed by Ormat and Northleaf on April 30, 2015.

The purchase price of US$44.2 million implies a total transaction value of approximately US$120 million and represents approximately 11.5x multiple on the second phase of Don A. Campbell’s 2016 estimated EBITDA and adjusted EBITDA.

Isaac Angel, Chief Executive Officer, Ormat, said:

“The successful monetization of the second phase of Don A. Campbell power plant validates the excellent relationship we have established with Northleaf, and demonstrates that Northleaf continues to see value in acquiring equity interests in our plants. The performance of ORPD's existing portfolio, as well as the new addition of Don A. Campbell 2, are in line with the parties' expectations, and we expect to achieve additional milestones that will benefit both Ormat and Northleaf. The proceeds from this transaction will further strengthen our balance sheet and support our expansion plans and future strategic opportunities.”

Olivier Laganière, Vice President, Northleaf, said:

“We are delighted to have successfully completed our planned acquisition of Don A. Campbell 2, broadening our existing ORPD joint venture alongside our partner Ormat, a world leader in geothermal development and operations. This transaction is an example of Northleaf’s strategy of investing in proven, conservatively-positioned contracted assets in OECD jurisdictions alongside like-minded operating partners, thereby providing our investors with the potential for long-term, stable returns.”

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