LONDON (ShareCast) - (Sharecast News) - US Solar Fund announced its third acquisition on Friday, confirming that it has executed binding agreements to acquire 100% of the cash equity interests in an approximately 39MW DC portfolio of eight operating utility-scale solar power projects located in North Carolina.
The London-listed firm said it would acquire the portfolio from Greenbacker Renewable Energy Company, which it described as a "leading investor and sponsor" focusing on income-producing renewable energy projects across the United States.

It said the projects began operations between 2012 and 2015, and were all selling 100% of their electricity output under fixed-price long-term power purchase agreements.

Those power purchase agreements were with subsidiaries of Duke Energy, with a weighted average term remaining of 10.2 years.

US Solar Fund said it would fund the portfolio acquisition with cash of approximately $36m, and did not anticipate using debt at the current time.

The company said it might consider raising debt against the portfolio at a later date.

It said the expected returns were in line with those anticipated in the company's investment objective, as set out in its prospectus on 26 February.

As it was operational, the portfolio would generate revenue for US Solar Fund immediately upon acquisition close, expected in early January once final diligence was complete.

"We are pleased to have signed this third acquisition agreement for US Solar Fund," said chairman Gillian Nott.

"The operating assets of the portfolio provide an excellent complement to USF's first two acquisitions of Milford and the Cypress Creek Portfolio, which are currently in construction."

Nott said it also brought geographic and offtaker diversification to the company's existing investment.

"The company continues to have an excellent pipeline of attractive assets and is making strong progress toward committing the IPO proceeds within nine months of the IPO."

Liam Thomas, chief investment officer of the company's investment manager New Energy Solar Manager, added that the firm was "excited" to acquire the operating portfolio from Greenbacker.

"The projects will provide the company with immediate cash flow as all eight projects are operating and generating revenue from electricity sales under long term contracts with Duke.

"This acquisition further demonstrates USF's ability to execute on its stated investment strategy and validates the investment thesis. We look forward to making further announcements."

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