Abengoa sells 450 MW of solar assets to Abengoa Yield

Abengoa Yield has reached an agreement with Abengoa to acquire four solar assets three in Spain and one in South Africa.

The four solar assets are the following:

• Helios (100 MW complex) in Spain
• Solnovas (150 MW complex) in Spain
• the remaining 70 % stake in Helioenergy (100 MW complex of which Abengoa Yield already owns a 30 % stake) in Spain
• a 51 % stake in Kaxu, a 100 MW plant in South Africa

Abengoa Yield expects these new assets to generate incremental run rate cash available for distribution of approximately $63 million per year before debt service associated with acquisition financing. This represents a 9.4 % acquisition yield. The acquisition includes the exercise of the 12 % call option signed with Abengoa in December 2014. Pro forma of this transaction, 93 % of CAFD is expected to be denominated or indexed to US$.

The acquisition will be financed with US$670 million proceeds of a capital increase priced Friday, May 8, at US$33.14 per share, which was based on a 3 % discount versus May 7 closing price, pursuant to a private placement that will result in the issuance of 20,217,260 new shares.

Average remaining useful life of the portfolio to be acquired is approximately 22 years. Helios, Solnovas and Helioenergy have been operating for two to five years, showing a solid operational track record and have significant management and operational synergies with existing solar assets in Abengoa Yield’s portfolio. Kaxu solar plant is located in the Kalahari desert in South Africa site with a solar radiation higher than the Southwest of the United States and has a power purchase agreement in place for 100 % of the output with Eskom, with a guarantee from the Department of Energy of the Government of South Africa, rated BBB-, Baa2, BBB.¹