8point3 Energy Partners (NASDAQ: CAFD) announced Nov. 14 that it has entered into an agreement to acquire First Solar‘s (NASDAQ: FSLR) 34% stake in the 300-MW Stateline solar project for $329.5 million.
Located in San Bernardino County, California, the Stateline project commenced operations in August 2016. The project is majority owned by Southern Co. (NYSE: SO) subsidiary Southern Power. Southern California Edison is purchasing the power generated by the project under a 20-year power purchase agreement.
“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,” said Chuck Boynton, CEO of 8point3 Energy Partners. “With the expected acquisition of Stateline, our portfolio will grow to interests in 937 MW 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 subject to customary closing conditions and is expected to close on or about Dec. 1, 2016. The partnership expects to fund the acquisition through some combination of cash on hand, a promissory note and borrowings under its existing credit facility.
8point3 Energy Partners LP is a growth-oriented limited partnership formed by First Solar and SunPower Corp. to own, operate and acquire solar energy generation projects. 8point3 Energy Partners’ primary objective is to generate predictable cash distributions that grow at a sustainable rate.