SunEdison completes second phase of solar buy from Dominion

SunEdison Inc. on Jan. 19 announced that it has completed the second phase of its transaction to acquire a 33% ownership interest in a 567-MW (dc) solar portfolio from Dominion Resources (NYSE: D).

SunEdison acquired a 33% interest in the remaining 231-MW portion of Dominion’s 567-MW portfolio of solar 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% interest in Dominion’s 567-MW portfolio of solar 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% 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 and may assign TerraForm Power Inc. (Nasdaq: TERP), a global owner and operator of clean energy power plants, call rights to the projects should they be repurchased. Any projects not repurchased by SunEdison would continue to be owned by the partnership.

“We are pleased that the Terra Nova partnership has invested in Dominion’s diverse, domestic portfolio of solar assets,” said Brian Wuebbels, SunEdison’s chief financial officer. “With Terra Nova acquiring the assets, we retain an option to acquire high quality contracted cash flows in the future.”

The 567-MW solar portfolio consists of 24 projects 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

Under construction

Cottonwood Carport

1.1

Operating

Cottonwood Corcoran

14.7

Operating

Cottonwood Goose Lake

16.9

Operating

Richland

33.7

Under construction

Alamo

23.7

Operating

Maricopa West

28.2

Under construction

Catalina 2

24.3

Under construction

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.

SunEdison develops, finances, installs, owns and operates renewable power plants, delivering predictably priced electricity to its residential, commercial, government and utility customers. SunEdison is one of the world’s largest renewable energy asset managers and provides customers with asset management, operations and maintenance, monitoring and reporting services. Corporate headquarters are in the United States with additional offices and technology manufacturing around the world.

J.P. Morgan Asset Management–Global Real Assets has more than $87 billion in assets under management and more than 400 professionals in the U.S., Europe and Asia Pacific, as of September 30, 2015. The Global Real Assets team is part of J.P. Morgan Asset Management’s Alternatives Investments business, which collectively manages over $120 billion in client assets across real assets, hedge funds, credit and private equity.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.