PORTLAND: US Solar Fund has entered exclusivity with Southern Current LLC, a leading US solar developer, to acquire an approximately 61 MW utility-scale solar power portfolio consisting of four in-construction projects located in Oregon.
Construction of the Southern Current Portfolio is well-progressed and all projects have long-term power purchase agreements (PPA) with an investment-grade offtaker. The projects are expected to commence operations during the second and third quarters of 2020.
USF’s investment manager is completing due diligence and is working towards a binding agreement to acquire the Portfolio. Subject to the completion of appropriate due diligence and documentation, USF expects to sign and complete the acquisition during the first half of 2020.
Should the transaction occur, USF will fund the equity purchase price with available cash from the approximately 30% of IPO proceeds left available before the potential refinancing of the Heelstone portfolio (as announced on 29 January 2020).
USF still intends to pursue the refinancing of the Heelstone portfolio but the flexibility in timing and quantum of that refinancing allows the Company to continue to pursue transactions that can be funded with available cash. Subject to Board approval, USF may also consider raising additional equity capital for the Heelstone refinancing to further enhance returns and for further acquisitions from its strong pipeline of investment opportunities.