NextEnergy buys two more plants – NextEnergy Solar has announced the signing and completion of two share purchase agreements for the acquisition of two operating solar plants with a total installed capacity of 8.6MWp. The plants were acquired from different counterparties and comprise Gilley’s Dam (5.0MWp, Cornwall) and Pickhill Bridge (3.6MWp, Wrexham).
Gilley’s Dam was developed by Athhos Solar and connected to the grid during March 2016 and accredited under the 1.3 Renewable Obligation Certificate regulation. The plant is located in the grounds of an industrial company and has a power purchase agreement (PPA) in place with the company covering the period up to 2040. Under the terms of the PPA, the counterpart will acquire on a take-or-pay basis the entirety of the electricity generated by the plant. The plant’s revenues will comprise the sale of ROCs and of electricity generated under the terms of the PPA.
Pickhill Bridge was connected to the grid during March 2017 and accredited under the 1.2 Renewable Obligation Certificate regulation. Both acquisitions were funded by the company’s existing cash resources.
The Solis portfolio acquisition has completed, with the change-of-control approvals secured by the portfolio’s lenders Unicredit S.p.A. and ING Bank N.V. Following completion, the company has implemented a 15-year foreign currency hedge covering approximately 80% of total expected distributions from the portfolio over the hedge life. The hedge counterpart is Banca Intesa San Paolo, Italy’s largest bank.
NextEnergy Solar says that it continues to pursue further transactions from its pipeline of acquisition opportunities and expects to announce further investments in due course.
NESF : NextEnergy buys two more plants