SunEdison completes first phase of Dominion PV acquisition

SunEdison has acquired 33% ownership in a 336MW portfolio of operating PV plants from Dominion for $180m plus a working capital adjustment.

It then sold the ownership stake to Terra Nova Renewable Partners, the strategic equity partnership it formed with Global Real Assets - institutional investors advised by JP Morgan Asset Management.

This acquisition is the first of two phases of a deal announced in September. The entire solar portfolio consists of 24 projects, with a total capacity of 567MW, located in Indiana, Georgia, Connecticut, California, Tennessee, and Utah.

This first phase of the transaction is for 15 projects that generate 336MW, while the second phase of 231MW is due to close in early 2016.

The solar portfolio's power output has been contracted with industry leading utilities and power off-takers with a weighted remaining contract term of 19.8 years.

The partnership, through an indirect subsidiary, has the option to buy the remaining 67% of the portfolio upon the occurrence of certain triggering events.

Under the partnership commitment, JP Morgan'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 tax equity.

SunEdison has the option to repurchase the projects from the partnership for a period of five years and may assign its yieldco, TerraForm Power, call rights to the projects should they be repurchased.

Any projects not repurchased by SunEdison would continue to be owned by the partnership.

To date, SunEdison has sold or otherwise transferred 633MW of wind assets and 336MW of solar assets to the partnership.