We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
8point3 (CAFD) to Acquire Interest in 300MW Solar Project
Read MoreHide Full Article
8point3 Energy Partners LP has signed an agreement to acquire a 34% interest in First Solar Inc.’s (FSLR - Free Report) 300-megawatt (“MW”) Stateline solar project located in San Bernardino County.
Details of the Transaction
8point3 Energy will purchase the project for $329.5 million. The transaction is dependent on customary closing conditions and is expected to close on Dec 1, 2016.
The partnership will finance the stake purchase through a combination of cash on hand, a promissory note and borrowings under its existing credit facility.
The stake purchase in the solar project is expected to generate about $32 million in average annual pre-tax cash flow.
The Stateline solar project, the majority of which is owned by Southern Company (SO - Free Report) , started operating in Aug 2016. Power generated by the project is purchased by Southern California Edison, a unit of Edison International (EIX - Free Report) , under a 20-year power purchase agreement (“PPA”).
8point3 Energy’s Take on the Deal
8point3 Energy is a limited partnership formed by two major solar companies – First Solar and SunPower Corporation (SPWR - Free Report) – in a bid to own and operate a portfolio of select solar energy generation assets primarily in the U.S. The sponsors of the partnership intermittently drop down assets to the partnership.
The CEO of 8point3 Energy, Chuck Boynton, believes the recent acquisition is in line with its long-term strategy of acquiring high-quality solar projects from its sponsors. With the addition of First Solar's 34% minority interest in Stateline project, 8point3 Energy’s diversified portfolio will hold interests in 937 MW of solar projects.
Regulations pertaining to pollution control are becoming increasingly stringent, making it crucial for utilities to spend more on emission control infrastructure. Meanwhile, because of their clean-burning nature, investment in the alternate energy space could prove to be profitable. In particular, solar energy, which presently contributes to only 1% of the total electricity generation in the U.S., represents ample scope of improvement in the days to come.
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
8point3 (CAFD) to Acquire Interest in 300MW Solar Project
8point3 Energy Partners LP has signed an agreement to acquire a 34% interest in First Solar Inc.’s (FSLR - Free Report) 300-megawatt (“MW”) Stateline solar project located in San Bernardino County.
Details of the Transaction
8point3 Energy will purchase the project for $329.5 million. The transaction is dependent on customary closing conditions and is expected to close on Dec 1, 2016.
The partnership will finance the stake purchase through a combination of cash on hand, a promissory note and borrowings under its existing credit facility.
The stake purchase in the solar project is expected to generate about $32 million in average annual pre-tax cash flow.
The Stateline solar project, the majority of which is owned by Southern Company (SO - Free Report) , started operating in Aug 2016. Power generated by the project is purchased by Southern California Edison, a unit of Edison International (EIX - Free Report) , under a 20-year power purchase agreement (“PPA”).
8point3 Energy’s Take on the Deal
8point3 Energy is a limited partnership formed by two major solar companies – First Solar and SunPower Corporation (SPWR - Free Report) – in a bid to own and operate a portfolio of select solar energy generation assets primarily in the U.S. The sponsors of the partnership intermittently drop down assets to the partnership.
The CEO of 8point3 Energy, Chuck Boynton, believes the recent acquisition is in line with its long-term strategy of acquiring high-quality solar projects from its sponsors. With the addition of First Solar's 34% minority interest in Stateline project, 8point3 Energy’s diversified portfolio will hold interests in 937 MW of solar projects.
8POINT3 ENERGY Price
8POINT3 ENERGY Price | 8POINT3 ENERGY Quote
Scope of Alternate Energy
Regulations pertaining to pollution control are becoming increasingly stringent, making it crucial for utilities to spend more on emission control infrastructure. Meanwhile, because of their clean-burning nature, investment in the alternate energy space could prove to be profitable. In particular, solar energy, which presently contributes to only 1% of the total electricity generation in the U.S., represents ample scope of improvement in the days to come.
Zacks Rank
8point3 Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>