Southern Power Co. has agreed to sell a 33% stake in a portfolio of 26 solar facilities to Global Atlantic Financial Group Ltd. for approximately $1.18 billion.
The facilities produce about 1,700 MW of electricity, which is sold under long-term power purchase agreements with customers across the U.S., according to a May 23 release. Southern Power, through its subsidiaries, will act as the general partner in the partnership and will assume operational responsibilities for the projects.
Citigroup Global Markets Inc. is serving as financial advisor and Jones Day is acting as legal counsel to Southern Power. Vinson & Elkins is serving as legal counsel to Global Atlantic Financial Group. Troutman Sanders acted as supporting counsel for the transaction.
Southern Power is a subsidiary of Southern Co., which two days earlier, announced a $6.48 billion deal to sell Florida utility subsidiaries Gulf Power Co. and Florida City Gas, as well as two gas-fired plants, to NextEra Energy Inc. Southern plans to use deal proceeds to address an estimated equity need of $7 billion over the next five years. During a May 21 conference call, executives said the company is also contemplating third-party tax equity deals for Southern Power's wind fleet, which could close in the fourth quarter and reduce debt by $1 billion.
