US Solar Fund boosts stake in Calif. solar project to 50%

London-listed US Solar Fund PLC has reached financial close on its acquisition of an additional 25% stake in the 200-MWdc Mount Signal Solar 2 in Imperial County, Calif., for an undisclosed amount.

The deal, which was funded with cash, takes US Solar Fund's total ownership stake in the project to 50%, or 100 MWdc, according to a June 7 filing with the London Stock Exchange. The transaction also increases the fund's weighted average investment-grade power purchase agreement term from 14.1 years to 14.5 years and further enhances geographic diversification.

US Solar Fund is now comprised of 42 operational assets with a combined capacity of 543 MWdc across five U.S. states.

In March 2021, New Energy Solar Ltd. closed the first tranche of its previously announced sale of an initial 25% stake in Mount Signal 2 to US Solar Fund. The deal, valued at between $44 million and $46 million, was structured in two tranches, with US Solar fund also having an option to acquire the second tranche, equal to another 25% stake in the project.

The output of the Mount Signal project is under contract to Edison International subsidiary Southern California Edison Co., according to S&P Global Market Intelligence data.

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