Boralex Announces Closing of the Acquisition of Interests in 7 Solar Plants in US

Boralex has announced the closing of the previously reported acquisition of the controlling interests in a portfolio of seven solar plants located in the United States, for a purchase price of CA $277 million (US $215.6 million) after certain adjustments made as per the acquisition agreements.

The seven solar plants have a total gross installed capacity of 209 MWac, whereby the acquired interests result in a net installed capacity of 118 MWac to Boralex. Since Boralex will control such solar assets, the financial information with respect thereto will be reported on a consolidated basis.

The solar plants, located in California (5), Alabama (1) and Indiana (1), were commissioned between 2014 and 2017 and benefit from long-term Power Purchase Agreements (“PPAs”) with the Regents of the University of California, Alabama Power Company, PG&E, Southern California Edison, City of Palo Alto, and Indianapolis Power & Light. Alabama Power has not exercised the right of first refusal it had regarding the Lafayette solar plant.

Following the transaction, Boralex’s total installed capacity worldwide stands at 2,455 MW.

Selected Highlights

  • Purchase price: CA$277M (US$215.6M).
  • Project debt financing of CA$192M (US$149M) completed with National Bank of Canada, Silicon Valley Bank, Caixa Bank and Bayern LB. Debt is covering 69% of the purchase price.
  • Adds 209 MWac to Boralex’s installed capacity.
  • Long term contracts with a remaining weighted average duration of close to 21.5 years.
  • Expected EBITDA contribution: around CA$35M (US $27M) under IFRS representing 100% of EBITDA for solar farms that will be consolidated in the Corporation’s financial statements.
  • Accretive to discretionary cash flow (AFFO) per share in the first year with expected AFFO of about CA$4M (US $3M) or $0.03 per share, a 3% increase over the consolidated amount generated by Boralex in 2019.

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