SunEdison Inc. has signed a definitive agreement with Dominion to establish a joint venture for Four Brothers, a 420 MW DC (320 MW AC) solar project in Utah.
Developed by SunEdison, the fully financed project is now under construction and has an expected commercial operations date of mid-2016. The project is expected to produce enough electricity to power more than 90,000 homes.
Four Brothers is contracted under long-term power purchase agreements for 20 years with PacifiCorp, a subsidiary of Berkshire Hathaway Energy.
Under the terms of the joint venture, Dominion will invest approximately $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 approximately $40 million 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.