8point3 Energy Partners has signed an agreement to acquire SunPower Corp's 49% stake in 102MW Henrietta solar project for $134m.
The deal also comes with a 20-year contract life and will generate around $10.9m in annual cash distributions.
The majority stake in this project is owned by Southern Company.
It is expected that the deal will generate approximately $10.9m in annual cash distributions.
8point3 Energy Partners CEO Chuck Boynton said: “Our acquisition of SunPower's 49 percent minority interest in Henrietta further re-enforces our long-term strategy of adding high quality solar projects from our sponsors, with investment grade off-takers, to our portfolio.
“With the expected acquisition of Henrietta, our portfolio will grow to interests in 637-MW of solar projects."
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By GlobalDataThis deal, which is subject to financing condition and other customary closing conditions, is slated to close by 30 September, 2016.
8point3 Energy Partners will fund the purchase through cash on hand, borrowings under its existing credit facility and the issuance of additional equity.
The Henrietta solar project is located in San Luis Valley, California.
The operation of the plant will commence in October.
Pacific Gas and Electric will buy the power generated by the project under a 20-year power purchase agreement.
