By Angela Chen
SunEdison Inc. and Dominion Resources Inc. said Wednesday they
will pool $650 million to establish a joint venture solar
project.
Shares of SunEdison rose 5.1% after hours, while Dominion shares
were unchanged.
Dominion will invest $500 million to acquire 50% of the cash
equity and 99% of the tax equity in the project, a 420-megawatt
project in Utah called Four Brothers. SunEdison will contribute the
remaining portion, which it has financed through a $150 million
four-year loan with Deutsche Bank.
Four Brothers generates about $40 million of unlevered cash
available for distribution to Dominion and Sun Edison. The project
is expected to produce enough electricity to power more than 90,000
homes.
The project is already under construction and should be
operating commercially by mid-2016. The project is contracted under
a long-term agreement for 20 years with PacifiCorp, a subsidiary of
Berkshire Hathaway Energy.
Write to Angela Chen at angela.chen@wsj.com
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