US Solar Fund enters agreement with Southern Current for the 61 MWdc solar portfolio in Oregon

US Solar Fund plc has entered into a binding agreement for the sale of an approximately 61 MWdc portfolio of four mechanically-complete utility-scale solar power projects located in Oregon (Portfolio).

The Fund will acquire the Portfolio from Southern Current LLC (Southern Current), a leading US solar developer and EPC contractor. All four projects in the Portfolio will sell 100% of their electricity output under long-term power purchase agreements (PPAs) with Portland General Electric, an Oregon-based utility servicing 1.9 million customers in and around Portland. The PPAs set escalating prices with fixed annual percentage increases for a weighted average term of 11.2 years. While the four projects are mechanically complete, plant commissioning is subject to the interconnection utility re-starting work following COVID-19 restrictions, expected to occur in the near future.

As part of the transaction, the Company's purchase price for the acquisition is payable in stages, with the full purchase price not at risk until the utility completes the work and the plants are operational and selling power under the PPAs. Additionally, the purchase price is subject to downward adjustment dependent on the length of time until the plants are operational.

USF will fund its acquisition with approximately US$23 million of cash on hand and US$43 million in long-term bank debt. Following the acquisition, and consistent with previous announcements, USF intends to use the approximately 15% of IPO proceeds remaining for further acquisitions or to partially pay down Acquisition Four's existing project-level debt (with any such a paydown being at USF's option). USF may also consider raising equity for a full paydown and re-financing of Acquisition Four's existing project-level debt.