The $500 million invested by Dominion will see the company acquiring 50% cash equity and 99% tax equity in the Four Brothers project. SunEdison, meanwhile, has secured the remaining $150 million needed via a four-year term loan from Deutsche Bank.
According to SunEdison, the solar project generates around $40 million of unlevered cash available for distribution (CAFD) for both parties. The renewable project developers 50% stake is on the Call Right Projects List for yieldco, TerraForm Power, Inc.
The Four Brothers solar project was originally developed by First Wind, with the company announcing last June the signing of a 20 year PPA with PacifiCorp, a subsidiary of Warren Buffett's Berkshire Hathaway Energy group. In November of last year, SunEdison and TerraForm Power took the project over, with their $2.4 billion acquisition of First Wind.
Construction is already underway on the 320 MW(ac) solar PV plant, with commercial operation slated for mid-next year. It is expected to create 500 jobs and produce $66 million in direct property and income taxes over 20 years.
"From a financial perspective, the Dominion partnership provides SunEdison and TerraForm Power with a complete solution for the construction and permanent financing of this 420 MW solar facility," commented Paul Gaynor, executive vice president of SunEdison EMEA & Americas.
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