Abengoa Yield Acquires Solaben 1/6 Solar Complex in Spain for $370M
Abengoa Yield (NASDAQ: ABY), the sustainable total return company that owns a diversified portfolio of contracted assets in the energy and environment sectors, announced yesterday its fourth asset acquisition.
Solaben Solar complex in Extremadura, Spain
Abengoa Yield has entered into a definitive agreement with Abengoa to acquire Solaben 1/6, a 100 MW solar complex in Spain, which has been in operation since 2013, showing a solid operational track record and synergies with our existing portfolio.
In addition, Abengoa Yield announced its first two acquisitions from third parties:
- it has closed the acquisition of ATN2 from Abengoa, after improving the revenues this project generates, and including the stake in the project owned by a financial investor, which was not previously considered.
- it has agreed to acquire 13% of the stake owned by JGC in Solacor 1/2, where it already owns a 74% stake.
Total consideration amounts to $370 million and Abengoa Yield expects these new assets to generate incremental run rate cash available for distribution of approximately $31.5 million per year before debt service associated with
acquisition financing. The acquisition will be financed with the revolving credit facility recently increased in $290 million and cash on hand. With this transaction, Abengoa Yield reaches total acquisitions of approximately $1.5 bn since its initial public offering at an average acquisition yield of approximately 9%.
Javier Garoz, CEO of Abengoa Yield, said:
“This fourth acquisition reinforces our consistent growth and shows a first acquisition from third parties of assets we know well. All our assets are showing strong operational performance providing solid results for the quarter that we will announce on July 30. We are glad to continue delivering on our commitments with our shareholders.”
The transaction has been approved by Abengoa Yield’s board of directors with the approval of independent directors. Solaben 1/6 and ATN2 transactions have been approved by Abengoa’s board of directors.
Source: Press Release by Abengoa Yield. Image Credit: Abengoa.
