8minutenergy Renewables, LLC (“8minutenergy”), the largest independent solar power developer in the U.S., today announced that it has entered into a definitive agreement to sell the equity interests of the 121 megawatt-dc Springbok 3 Solar Farm in Kern County, California to Capital Dynamics, an independent global private asset management firm. The project is the third installation in the Springbok cluster, joining 8minutenergy’s 137 MW-dc Springbok 1 project, and its 191 MW-dc Springbok 2 project to supply clean energy to more than 152,000 Los Angeles households. The project will break ground later this year, and commercial operation is slated for June 2019.
Capital Dynamics will acquire Springbok 3’s equity interests from 8minutenergy, who will continue to be the project developer and construction manager. Although terms of the transaction are not being disclosed, Capital Dynamics is currently arranging tax equity and debt financing for the project, with financial closing and regulatory approvals expected in Q4 2018.
8minutenergy previously announced the Springbok 3 PPA with the Southern California Public Power Authority (SCPPA) on behalf of its participating member, the Los Angeles Department of Water and Power (LADWP). Springbok 3 has a 27-year power purchase agreement with SCPPA, with an option for a three-year extension.
“As California embarks on the challenge of transitioning to 100% clean energy, projects such as the Springbok cluster will be instrumental in proving the cost-competitiveness and ease of installation of large-scale solar power,” said 8minutenergy’s Chief Executive Officer, Martin Hermann. “We are pleased to collaborate on another project with Capital Dynamics to bring reliable, affordable solar energy to the people of Los Angeles.”
“Our Springbok projects were among the first operational solar farms to beat fossil fuel prices in the nation,” said 8minutenergy President and Co-Founder, Tom Buttgenbach. “With Springbok 3’s long-term PPA in place, we are grateful to our deeply-committed partners – the Los Angeles Department of Water and Power, SCPPA, Capital Dynamics, Kern County, and the City of Los Angeles – for understanding the importance of affordable clean energy, and for sharing our industry-leading vision.”
“We are proud to acquire the Springbok 3 solar project, and to deepen our relationship with 8minutenergy,” said Benoit Allehaut, Director in the Capital Dynamics’ Clean Energy Infrastructure (CEI) business. “Our strategy of ownership of high-quality assets with very long-term power purchase agreements aligned perfectly with this particular project. We are confident in our ability to deliver a premium asset in partnership with 8minutenergy, having already witnessed their dedication to developing projects on-time and on-budget.”
8minutenergy engaged several advisory firms to close the transaction, most notably Bank of America Merrill Lynch as the lead financial advisor, and Orrick, Herrington, and Sutcliffe as legal counsel. Capital Dynamics was represented by Amis, Patel, & Brewer, LLP as legal counsel.
Source: 8minutenergy Renewables
Date: Sep 26, 2018