8point3 Energy Partners (NASDAQ:CAFD) said Sept. 20 that it has entered into an agreement to acquire SunPower Corp.’s (NASDAQ:SPWR) 49% stake in its 102-MW Henrietta solar project in California for $134m.
The acquisition is expected to generate approximately $10.9m in annual cash distributions and has a 20 year contract life, 8point3 said in a Sept. 20 news release.
The transaction is subject to a financing condition and other customary closing conditions and was expected to about Sept. 30. The partnership expects to fund the acquisition through some combination of cash on hand, borrowings under its existing credit facility and the issuance of additional equity.
“Our acquisition of SunPower’s 49 percent minority interest in Henrietta further re-enforces our long-term strategy of adding high quality solar projects from our sponsors, with investment grade off-takers, to our portfolio,” said Chuck Boynton, CEO of 8point3 Energy Partners. “With the expected acquisition of Henrietta, our portfolio will grow to interests in 637-MW of solar projects.”
Located in California’s San Luis Valley, the Henrietta project will commence operations this fall. The project is majority owned by Southern (NYSE:SO) subsidiary Southern Power. Pacific Gas and Electric is purchasing the power generated by the project under a 20-year power purchase agreement.