RPV Holdco 1 consists of a portfolio of residential solar leases representing 53 MW
Clearway Energy announces divesture of residential solar portfolio and closing of acquisition of remaining interest in Repowering 1.0. (Credit: Pixabay/schropferoval)
Clearway Energy announced that, through indirect subsidiaries of the Company, it has closed a transaction to divest its residential solar portfolio for cash proceeds to the Company of $75 million1. Additionally, the Company has also closed the previously announced agreement to acquire Clearway Group’s (CEG) interest in Repowering Partnership II LLC (Repowering 1.0) for $70 million.
“The divesture of Clearway’s residential solar portfolio allows the Company to use proceeds from the sale of a non-core asset to prudently recycle capital into strategic investments more aligned with the Company’s platform and operating strengths,” said Christopher Sotos, Clearway Energy, Inc.’s President and Chief Executive Officer. “The proceeds from the divesture along with the expected release of excess restricted cash at PG&E projects in the second half of this year will allow Clearway to fund the previously announced drop-down investments in line with our balance sheet objectives.”
Highlights of the transactions include:
Residential Solar Portfolio Divesture: RPV Holding LLC, an indirect subsidiary of Clearway Energy, Inc., and Clearway Energy Group LLC jointly entered into a purchase and sale agreement with Spruce Finance to sell 100% of their interests in RPV Holdco 1 LLC and its subsidiaries. The Company’s allocation of cash proceeds from the sale is $75 million1. RPV Holdco 1 LLC consists of a portfolio of residential solar leases representing 53 MW. The transaction closed simultaneously with the execution of the purchase and sale agreement. KeyBanc Capital Markets acted as financial advisor to the Company on the transaction.
Remaining Interest in Repowering 1.0: The Company acquired CEG’s remaining interest in Repowering 1.0 for a cash consideration of $70 million. Repowering 1.0 includes the 161 MW Wildorado and 122 MW Elbow Creek wind projects, which were previously repowered.
Given the timing of the transactions, the Company’s 2020 financial guidance has not changed.