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(Alliance News) - US Solar Fund PLC on Thursday announced an agreement to acquire up to a 50% interest in 200 megawatt direct current operating solar plant Mount Signal 2 in Imperial Valley, California for between USD44 million and USD46 million.
The US solar power-focused fund is acquiring the interest from ASX-listed New Energy Solar Fund Ltd. The acquisition will be structured in two tranches, with the first comprising an immediate acquisition of an initial 25% interest for USD23 million.
The second tranche contains an option for US Solar Fund to acquire another 25% interest for USD22 million, subject to a performance-based adjustment mechanism that can raise or lower the price by USD1 million.
Once the first tranche is completed, US Solar Fund's total portfolio will comprise 493 megawatts of direct current and a weighted average investment-grade power purchase agreement term of 15.6 years.
"MS2's long term, investment-grade, escalating-price PPA brings USF's weighted average remaining PPA term to almost 16 years and provides further diversification in terms of geography, project and PPA offtaker to the portfolio. As a result of the transaction, 100% of USF's IPO proceeds have now been invested or committed to operational projects and we look forward to continuing to offer investors the opportunity to participate in the attractive US solar market," said Chair Gill Nott.
Shares in US Solar Fund were up 1.4% at USD1.09 on Thursday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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