SAN JOSE, Calif., April 1, 2016 /PRNewswire/ -- 8point3 Energy
Partners LP (Nasdaq: CAFD), the joint venture formed by SunPower
(Nasdaq: SPWR) and First Solar (Nasdaq: FSLR), announced today
that it has entered into agreements to acquire an interest in the
50 megawatt (MW) Hooper Project from SunPower and the 40 MW
Kingbird Project from First Solar. These drop-down
acquisitions are expected to generate approximately $9 million in combined annual pre-tax cash flow
and have a 20 year average contract life.
"We're pleased to announce our second and third drop-down
transactions today," said Chuck
Boynton, CEO of 8point3 Energy Partners. "These acquisitions
continue our long-term strategy of adding high quality solar
projects with investment grade off-takers to our
portfolio."
Hooper and Kingbird Project Details
The 50 MW Hooper Project is located in Colorado's San Luis Valley and commenced
operations in December 2015.
Xcel Energy is purchasing the power generated by the Hooper
Project under a 20 year power purchase agreement. All
conditions have been satisfied and the transaction is expected to
close today.
The 40 MW Kingbird Project has been acquired and is located in
Kern County, California.
Construction of the plant is expected to be completed next
month. Following commercial operation, power generated by the
Kingbird Project will be sold to member cities of the Southern
California Public Power Authority and the City of Pasadena under separate 20 year power
purchase agreements.
"These transactions, along with our purchase of the Kern County School District project in
January, should enable us to achieve our targeted annual
distribution growth rate of 12-15 percent through the end of 2017
without additional project acquisitions," Boynton added.
ROFO Portfolio Adjustment
With the increased opportunity to potentially acquire solar
power plant projects beyond 2016 due to the recent extension of the
federal Investment Tax Credit and with the desire to finance
acquisitions on favorable terms while simultaneously maintaining a
conservative capital structure, the partnership has agreed to make
certain adjustments to the ROFO portfolio. These adjustments
include (i) waiving the partnership's right of first offer on a
portion of First Solar's interest in the 300 MW Stateline Project
and (ii) adding First Solar's 179 MW Switch Station Project in
Nevada to the ROFO portfolio,
which has an expected commercial operation date in 2017.
8point3 Energy Partners now expects to be offered First Solar's
remaining ownership stake in the Stateline Project, approximately
35 percent in the aggregate, at the end of 2016 or the first half
of 2017. The partnership believes that these adjustments
better align the ROFO portfolio with its targeted long-term growth
plan while maintaining its stated targeted annual distribution
growth.
About 8point3 Energy Partners
8point3 Energy Partners LP (NASDAQ: CAFD) is a
growth-oriented limited partnership formed by First Solar,
Inc. and SunPower Corporation to own, operate and
acquire solar energy generation projects. 8point3 Energy
Partners' primary objective is to generate predictable cash
distributions that grow at a sustainable rate. The partnership owns
interests in projects in the United States that generate
long-term contracted cash flows and serve utility, commercial and
residential customers. For more information
about 8point3 Energy Partners, please
visit: www.8point3energypartners.com.
For 8point3 Energy Partners Investors
This press release includes various "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements.
Forward-looking statements are statements of future expectations
that are based on management's current expectations and assumptions
and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially
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Forward-looking statements include, among other things, statements
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future events or outcomes. In accordance with "safe harbor"
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these statements are accompanied by cautionary language identifying
important factors, though not necessarily all such factors, which
could cause future outcomes to differ materially from those set
forth in forward-looking statements. In particular, expressed or
implied statements concerning the expectations of plans,
strategies, objectives and growth and anticipated financial and
operational performance of the partnership and its subsidiaries,
including guidance regarding the partnership's revenue, adjusted
EBITDA, cash available for distribution and distributions, other
future actions, conditions or events such as the projected
commercial operation dates of projects, future operating results or
the ability to generate sales, income or cash flow or to make
distributions are forward-looking statements. Forward-looking
statements are not guarantees of performance. They involve risks,
uncertainties and assumptions. Future actions, conditions or events
and future results of operations may differ materially from those
expressed in these forward-looking statements. Forward-looking
statements speak only as of the date of this press release,
April 1, 2016, and we disclaim any
obligation to update such statements for any reason, except as
required by law. All forward-looking statements contained in this
press release are expressly qualified in their entirety by the
cautionary statements contained or referred to in this paragraph.
Many of the factors that will determine these results are beyond
our ability to control or predict. These factors include the risk
factors described under "Risk Factors" in the partnership's
Transition Report on Form 10-K for the transition period from
December 28, 2014 to November 30, 2015, filed with the Securities
Exchange Commission on January 28,
2016. If any of those risks occur, it could cause our actual
results to differ materially from those contained in any
forward-looking statement. Because of these risks and
uncertainties, you should not place undue reliance on any
forward-looking statement.
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SOURCE 8point3 Energy Partners LP