Guelph-based Canadian Solar has acquired three solar farms located in Sault Ste. Marie in a deal worth $270 million.
The solar farms, which have a total capacity of 59.8 megawatts, were acquired from global investment firm KKR, which has a Calgary location. The projects hold long-term fixed-price contracts established under the Renewable Energy Standard Offer program.
In conjunction with the acquisition, Canadian Solar closed a US$50-million loan with Credit Suisse, which acted as the sole financial advisor on the transaction.
Canadian Solar plans to assume the roles of both the owner and operator of the projects, which have been connected to the grid between October 2010 and November 2011.
In addition, term financing will be provided by Norddeutsche Landesbank Girozentrale, New York Branch and KfW-IPEX Bank, assumed as part of the acquisition.
“These projects will help round out our Canadian portfolio and are part of our strategy to own and operate projects,” Dr. Shawn Qu, chairman and CEO of Canadian Solar, said in a news release.
“This acquisition demonstrates Canadian Solar's ongoing investment and dedication to solar, as well as staying true to our strategy. We look forward to future transactions with KKR in North America.”
