Us Solar Fund Regulatory News (USFP)

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29 January 2020

US SOLAR FUND PLC (USF, the "Company")

FOURTH BINDING ACQUISITION AGREEMENT AND POTENTIAL EQUITY CAPITAL RAISING

USF TO ACQUIRE TWENTY-TWO OPERATING SOLAR PROJECTS (177 MWDC) IN NORTH CAROLINA, OREGON, AND CALIFORNIA

US Solar Fund plc (LON: USF (USD)/USFP (GBP)) is pleased to announce it has executed binding agreements to acquire 100% of the cash equity interests in an approximately 177MWDC portfolio of twenty-two operating utility-scale solar power projects located in North Carolina, Oregon, and California (Portfolio).

USF will acquire the Portfolio from an affiliate of Heelstone Renewable Energy, LLC (Heelstone). Heelstone is a leading developer of renewable energy projects in the United States, having developed over 60 projects with an aggregate capacity in excess of 500MWDC.

The projects commenced operations between 2016 and 2018 and sell 100% of their electricity output under fixed price long-term power purchase agreements (PPA) to a variety of investment grade offtakers (S&P ratings ranging from BBB+ to A). The PPAs have a weighted average term remaining of 12 years.

USF will fund the equity purchase price for the Portfolio acquisition with available cash. Combined with the three previously announced transactions, this represents a total commitment of approximately 70% of the net IPO proceeds. Post-acquisition, USF intends to use the remaining 30% of the net IPO proceeds to refinance the existing project level debt with a new, smaller debt facility on more attractive terms resulting in lower Portfolio gearing and improved returns. Post-refinancing, USF will be fully committed and substantially invested. Subject to Board approval, the Company may also consider raising additional equity capital for the refinancing to further enhance returns and for further acquisitions from its strong pipeline of investment opportunities. Further details will be announced in due course.

The expected Portfolio returns are in line with those anticipated in the Company's investment objective, as set out in its prospectus dated 26 February 2019. As it is operational, the Portfolio will generate revenue for USF immediately upon acquisition close, expected in early February pending satisfaction of customary consents and conditions. Further Portfolio and transaction details will be announced upon closing.

Gillian Nott, Chairman of USF, said:

"USF is delighted to have continued its recent execution on high quality assets and to have established a pathway to have 100% of the IPO proceeds committed. This Portfolio of operating assets is complementary to USF's prior acquisitions and creates a diversified mix of operating, cash-flowing projects and in-construction assets. The Portfolio will bring USF's total utility-scale solar asset count to 37 sites totalling over 380MWDC of generating capacity."

Liam Thomas, Chief Investment Officer of USF's investment manager New Energy Solar Manager, said:

"Acquiring this latest Portfolio of high-quality operating projects demonstrates our ability to execute on USF's investment objectives. We continue to see attractive opportunities in the US market and are looking forward to growing USF to be a solar investor of significant scale as demand for utility scale solar grows alongside ongoing decarbonisation of the electricity sector."

Further information on the Company can be found on its website at http://www.ussolarfund.co.uk.

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About US Solar Fund plc

US Solar Fund plc listed on the premium segment of the London Stock Exchange in April 2019, following its successful US$200m IPO. The Company's investment objective is to provide investors with attractive and sustainable dividends with an element of capital growth by investing in a diversified portfolio of solar power assets in North America and other OECD countries in the Americas.

The Company will acquire or construct, own and operate solar power assets that are expected to have an asset life of at least 30 years and generate stable and uncorrelated cashflows by selling electricity to creditworthy offtakers under long-term power purchase agreements (or PPAs).

About the Investment Manager

USF is managed by New Energy Solar Manager (NESM). NESM also manages New Energy Solar, an Australian Securities Exchange (ASX)-listed fund which has committed over US$1bn to US and Australian solar plants since late 2015.

NESM is owned by Walsh & Company, the funds management division of Evans Dixon, an ASX-listed company (ASX: ED1) with over A$20 billion of funds under advice and management.