Solar developer 8minutenergy Renewables LLC has entered into a definitive agreement to sell the equity interests of the 121 MW Springbok 3 Solar Farm in Kern County, Calif., to asset management firm Capital Dynamics.
This project is the third installation in the Springbok cluster, joining 8minutenergy’s 137 MW Springbok 1 project and 191 MW Springbok 2 project. The project will break ground later this year, and commercial operation is slated for June 2019.
Capital Dynamics will acquire Springbok 3’s equity interests from 8minutenergy, which will continue to be the project developer and construction manager. Although terms of the transaction are not being disclosed, Capital Dynamics is currently arranging tax equity and debt financing for the project, with financial closing and regulatory approvals expected in the fourth quarter.
8minutenergy previously announced a power purchase agreement (PPA) for Springbok 3 with the Southern California Public Power Authority (SCPPA) on behalf of its participating member, the Los Angeles Department of Water and Power. Springbok 3 has a 27-year PPA with SCPPA with an option for a three-year extension.
“As California embarks on the challenge of transitioning to 100 percent clean energy, projects such as the Springbok cluster will be instrumental in proving the cost-competitiveness and ease of installation of large-scale solar power,” comments Martin Hermann, CEO of 8minutenergy. “We are pleased to collaborate on another project with Capital Dynamics to bring reliable, affordable solar energy to the people of Los Angeles.”
8minutenergy engaged several advisory firms to close the transaction: Bank of America Merrill Lynch as the lead financial advisor and Orrick, Herrington and Sutcliffe as legal counsel. Capital Dynamics was represented by Amis, Patel, & Brewer LLP as legal counsel.
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