Terra Nova Renewable Partners acquires 33 % stake in 567 MW solar portfolio

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Terra Nova Renewable Partners acquires 33 % stake in 567 MW solar portfolio

SunEdison, Inc. yesterday announced that it has completed the second phase of its transaction to acquire a 33 percent ownership interest in a 567 megawatt DC U.S. solar portfolio from Dominion.

SunEdison acquired a 33 percent interest in the remaining 231 megawatt portion of Dominion's 567 megawatt portfolio of solar power plants for $117 million.

At the same time, Terra Nova Renewable Partners, the strategic equity partnership formed between SunEdison and institutional investors advised by J.P. Morgan Asset Management – Global Real Assets, acquired SunEdison's interest in the transaction from SunEdison for the same price.

Terra Nova now owns the 33 percent interest in Dominion's 567 megawatt DC portfolio of solar power plants acquired through the consummation of both phases of the transaction.

Terra Nova, through an indirect subsidiary, has the option to buy the remaining 67 percent of the portfolio when certain trigger events occur. This completes the two phases of the Dominion transaction announced in September 2015.

SunEdison has the option to repurchase the projects from the partnership for a period of five years through its vehicle TerraForm Power, Inc., a global owner and operator of clean energy power plants. Any projects not repurchased by SunEdison would continue to be owned by the partnership.

Brian Wuebbels,SunEdison's chief financial officer, said:

"We are pleased that the Terra Nova partnership has invested in Dominion's diverse, domestic portfolio of solar assets. With Terra Nova acquiring the assets, we retain an option to acquire high quality contracted cash flows in the future."

The 567 megawatt solar portfolio consists of 24 projects which are located in Indiana, Georgia, Connecticut, California, Tennessee, and Utah. This second phase of the transaction is for nine of those projects. The solar portfolio's total power output has been contracted with industry leading utilities and power offtakers and has a weighted remaining contract term of 19.8 years.

Asset

Megawatt Capacity

(DC)

Status

Pavant

62.3

Operating

Cottonwood Carport

1.1

Under construction

Cottonwood Corcoran

14.7

Operating

Cottonwood Goose Lake

16.9

Operating

Richland

33.7

Operating

Alamo

23.7

Operating

Maricopa West

28.2

Operating

Catalina 2

24.3

Operating

Imperial Valley

25.9

Operating

The Terra Nova partnership was announced during September 2015. Under the partnership commitment, J.P. Morgan Asset Management's clients are expected to provide equity to purchase renewable energy projects developed or purchased by SunEdison.  Remaining project costs are expected to be funded with a combination of limited recourse commercial bank debt and/or tax equity.   

KeyBanc Capital Markets and Santander Bank served as advisors to SunEdison. CohnReznick Capital Markets served as financial advisor and Milbank, Tweed, Hadley & McCloy LLP served as legal advisor to J.P. Morgan Asset Management.

The first phase of the acquisition was composed of the following projects:

Asset

Megawatt Capacity (DC)

Development Status

Indy Solar I

13.9

Operating

Indy Solar II

13.9

Operating

Indy Solar III

11.9

Operating

Azalea

9.7

Operating

Somers

7.4

Operating

Camelot

59.1

Operating

CID

27.2

Operating

Kansas

27.1

Operating

Kent South

26.3

Operating

Old River One

26.8

Operating

West Antelope Solar Park

28.4

Operating

Adams East

24.9

Operating

Mulberry

20

Operating

Selmer

20

Operating

Columbia Two

19.4

Operating

Share this news