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This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR").
18 June 2019
US SOLAR FUND PLC
US SOLAR FUND ENTERS EXCLUSIVITY TO ACQUIRE 90 MWDC SOLAR PORTFOLIO FROM CYPRESS CREEK RENEWABLES
US Solar Fund plc (LSE: USF, or the Company), a newly established investment company focused on investing in solar power assets primarily in the United States, is pleased to announce it has entered exclusivity with US-based solar developer Cypress Creek Renewables to acquire a portfolio of utility-scale solar power projects located in North Carolina and Oregon.
The projects have a total capacity of approximately 90MWDC. In keeping with the Company's investment policy, all have long-term power purchase agreements with investment-grade offtakers with energy delivery expected to commence in 2020 for all projects. USF's investment manager, New Energy Solar Manager Pty Limited, is completing due diligence and is working expeditiously towards a binding agreement to acquire the portfolio as well as structuring debt and tax equity finance.
USF expects to acquire the portfolio progressively, as each project reaches a 'construction-ready' stage, with the first four projects expected to commence construction early in the second half of 2019.
Including its announcement of exclusivity on a 120 MWDC project last week, USF has now entered exclusive negotiations to acquire projects with a combined capacity of over 200MWDC. These projects are expected to represent a commitment of more than 50% of the available equity from the IPO, approximately $196 million.
Liam Thomas, Chief Investment Officer for New Energy Solar Manager, USF's investment manager, said:
"We are very pleased to be making this second announcement so soon after our initial exclusivity announcement last week. This portfolio acquisition is a further example of how we are converting our identified pipeline of US$4.8 billion of assets into tangible investments leveraging the strong relationships and track record that New Energy Solar Manager has built over the last three and a half years. We look forward to sourcing opportunities for USF investors in the growing US solar market."
Sarah Slusser, Chief Executive Officer of Cypress Creek Renewables, said:
"Cypress Creek is pleased to deepen our partnership with New Energy Solar Manager through this second group of solar projects. Solar energy is growing across the US, and we are proud to develop valuable solar projects that create economic development opportunities in communities across the country."
Further details will be provided once due diligence is finalised and binding acquisition agreements are executed.
For further information, please contact:
US Solar Fund Investor Relations
Whitney Voûte +1 718 230 4329
Fidante Capital (Corporate Broker)
John Armstrong-Denby / Nick Donovan +44 207 832 0900
About US Solar Fund plc
US Solar Fund plc listed on the London Stock Exchange in April 2019, following its successful US$200m IPO. The Company's investment objective is to provide investors with attractive and sustainable dividends, with an element of capital growth, by investing in a diversified portfolio of solar power assets in North America and other OECD countries in the Americas.
USF is aiming to deliver:
• an annual dividend yield target of 5.5% once all Solar Power Assets are operational with an average growth rate of 1.5 -2.0% per annum (on a fully invested and geared basis)
• initial target annual dividend yield of 2 to 3% until all Solar Power Assets are fully operational
• target net total return over the life of the Solar Power Assets of at least 7.5% per annum
Initial proceeds are expected to be invested or committed within six to nine months of Admission, with most plants expected to be operational within the following 12 months.
About the Investment Manager
USF is managed by New Energy Solar Manager (NESM). NESM also manages New Energy Solar, an Australian Securities Exchange (ASX)-listed fund which has committed over US$800m to US and Australian solar plants since late 2015.
NESM is owned by Walsh & Company, the funds management division of Evans Dixon, an ASX listed company (ASX: ED1) with over A$18 billion of funds under advice and management.
Further information on the Company can be found on its website at www.ussolarfund.co.uk.
