MN8 Energy to purchase stake in California solar farm

Jan 23, 2023 12:23 PM ET
  • The sale for fifty percent of the 200MW facility is anticipated to enclose the 2nd quarter of 2023
MN8 Energy to purchase stake in California solar farm
Image: Pixabay

US Solar Fund has announced that MN8 Energy, previously known as Goldman Sachs Renewable Power, has actually exercised its purchase alternative over USF's 50% passion in the 200MW DC Mount Signal 2 (MS2) solar farm.

The option gives MN8 the right to acquire USF's 50% passion in MS2 for US$ 52.2 m leaving out functioning capital plus a non-refundable alternative fee of $1m.

USF's total proceeds of $53.2 m follow the last released net asset value for MS2 before the give of the choice.

The MS2 sale will imply a gross return of around 11% per annum since USF introduced the agreement to get approximately 50% of MS2 from New Energy Solar in December 2020.

USF expects to carry out binding sale documents in the very first quarter of 2023, with monetary enclose the second quarter of 2023 based on customary regulatory as well as investor approvals.

The alternative workout as well as expected resultant MS2 sale has no impact on the Strategic Review and Formal Sale Process (Strategic Review) revealed on 17 October, 2022.

DC Mount Signal 2 is a solar farm based in southern California. Its whole output is sold to Southern California Edison under a 20-year PPA that started in June 2020.

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