SunEdison, Dominion Form JV For 420 MW, Four Brothers Solar Project In Utah

(RTTNews) - SunEdison, Inc. (SUNE) said Wednesday that it has signed a definitive agreement with Dominion Resources, Inc. (D) establishing a joint venture for Four Brothers, a 420 megawatt DC, or 320 megawatt AC, solar project in Utah, developed by SunEdison.

The project is now under construction and fully financed with an expected commercial operation date of mid-2016. The Four Brothers project is contracted under long-term power purchase agreements for 20 years with PacifiCorp, a subsidiary of Berkshire Hathaway Energy.

Under the terms of the JV, Dominion will invest about $500 million to acquire 50% of the cash equity and 99% of the tax equity in Four Brothers, including funding of construction. SunEdison will contribute the remaining portion of the capital required to complete the project, which it has fully financed through a $150 million four-year term loan with Deutsche Bank. The total $650 million financing package fully funds the project for completion and long-term ownership.

Four Brothers generates about $40 million dollars of unlevered cash available for distribution to Dominion and SunEdison. SunEdison's 50% interest in the Four Brothers project is on the Call Right Projects List for TerraForm Power, Inc. (TERP).