8Point3 Energy Partners buys 34% stake in 300-MW project for $329.5 million from First Solar

Written By: Stratton Report
November 14, 2016

8 point 3 main

On November 14, yieldco 8point3 Energy Partners announced that it had entered into an agreement to acquire parent First Solar’s 34 percent stake in its 300-MW Stateline solar project for $329.5 million.  The partnership will fund the acquisition through some combination of cash on hand, a promissory note and borrowings under its existing credit facility.

Located in San Bernardino County, the Stateline project commenced operations in August 2016. The project is majority owned by Southern Company. Southern California Edison is purchasing the power generated by the project under a 20 year power purchase agreement. 

Chuck Boynton, CEO of 8point3 Energy Partners observed:

“Consistent with our long-term strategy of acquiring high quality solar projects from our sponsors, we are pleased to add First Solar’s 34 percent minority interest in Stateline to our diversified portfolio. With the expected acquisition of Stateline, our portfolio will grow to interests in 937MW of solar projects.”

The project is expected to generate approximately $32 million in average annual pre-tax cash distributions and has a 20 year contract life.

The transaction is expected to close on or about December 1, 2016.