AES and AIMCo to acquire solar project developer sPower from Fir Tree Partners

The sPower portfolio includes 1,274 MW of solar and wind projects in operation or under construction
The sPower portfolio includes 1,274 MW of solar and wind projects in operation or under construction

AES Corporation (AES; Arlington, Virginia) and Alberta Investment Management Corporation (AIMCo, Edmonton, Alberta, Canada), on behalf of certain of its clients, have agreed to acquire renewable energy provider FTP Power LLC (sPower, Salt Lake City, Utah, U.S.), from New York based private investment firm Fir Tree Partners and its minority owners, for USD 853 million in cash, plus the assumption of USD 724 million in non-recourse debt.

In connection with the transaction, AES and AIMCo will each directly and independently purchase and own slightly below 50% equity interests in sPower.

sPower, a Fir Tree portfolio company that the firm capitalized in 2014, owns and operates utility and commercial distributed electrical generation systems across the United States.

The sPower portfolio includes 1,274 MW of solar and wind projects in operation or under construction and a development pipeline of more than 10,000 MW located in the United States.

The operating assets and projects under construction are under long-term Power Purchase Agreements (PPA) with an average remaining life of 21 years.

After closing, AES’ ownership of renewable energy projects in operation and under construction will grow from 8,278 MW to 9,552 MW, including hydro, wind, solar and energy storage.

“We are very pleased to acquire sPower, the largest independent solar developer in the United States,” said Andrés Gluski, AES President and Chief Executive Officer.

“sPower not only brings 1.3 GW of installed capacity with an average remaining contract life of more than 20 years, but a first class management and development team with a pipeline of more than 10 GW of projects,”

The transaction is expected to close by the third quarter of 2017.

 

2017-02-27 | Courtesy: AES | solarserver.com © Heindl Server GmbH

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