US Solar picks up 177MW across 22 projects – US Solar Fund is buying an approximately 177MW portfolio of twenty-two operating utility-scale solar power projects located in North Carolina, Oregon, and California. The vendor is Heelstone Renewable Energ, a leading developer of renewable energy projects in the United States, having developed over 60 projects with an aggregate capacity in excess of 500MW.
The projects commenced operations between 2016 and 2018 and sell 100% of their electricity output under fixed price long-term power purchase agreements (PPAs) to a variety of investment grade offtakers (with S&P credit ratings ranging from BBB+ to A). The PPAs have a weighted average term remaining of 12 years.
About 70% of the net IPO proceeds have now been committed. The remaining 30% will be used to refinance the existing project level debt with a new, smaller debt facility on more attractive terms (reducing portfolio gearing and improving returns). USF will then be fully committed and substantially invested.
Equity raise
Subject to board approval, US Solar may consider raising additional equity capital. Further details will be announced in due course.
USF : US Solar picks up 177MW across 22 projects