SunEdison, Inc. (NYSE: SUNE) has reached a definitive agreement to acquire a 50% ownership stake in Silver Ridge Power, LLC ("SRP") from a subsidiary of The AES Corporation. Through its ownership in the SRP joint venture, SunEdison will own 50% of (i) 336 MW (megawatt) of solar power plant operating projects and (ii) a 40% interest in the Tenaska Imperial Solar Energy Center West 183 MW solar power facility to be completed in 2016. SRP's assets include the currently operating 266 MW Mt. Signal solar project in California.
The acquisition is expected to close in late June 2014, subject to customary closing conditions and receipt of regulatory approvals.
Following the acquisition, the remaining 50% of SRP will continue to be held by an affiliate of Riverstone Holdings LLC ("Riverstone"). After closing, Riverstone and SunEdison expect the joint venture to contribute the Mt. Signal project to SunEdison's yieldco subsidiary. In addition, following completion of the Tenaska Imperial Solar Energy Center West project, and subject to customary closing conditions and receipt of regulatory approvals, SunEdison expects to acquire Riverstone's share of SRP's interest in Tenaska Imperial Solar Energy Center West and to contribute a total of a 40% interest in Tenaska Imperial Solar Energy Center West to SunEdison's yieldco subsidiary in 2016.
"SRP has several strong projects in operation," said Ahmad Chatila, CEO of SunEdison. "We're looking forward to working with Riverstone, a recognized leader in energy project finance and investing, to continue to monetize SRP's operating projects."
"We're pleased to welcome SunEdison, a leader in project development, finance and asset ownership, as our new partner in SRP," said Michael B. Hoffman, a Partner at Riverstone.
The transactions with AES and Riverstone are subject to purchase price adjustments and customary regulatory approvals, including Federal Energy Regulatory Commission (FERC) approval and an antitrust review under the Hart-Scott-Rodino (HSR) Act. These approvals are expected in late June 2014.
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