WASHINGTON, July 27, 2015 (GLOBE NEWSWIRE) -- Abengoa Yield (NASDAQ:ABY), the sustainable total return company that owns a diversified portfolio of contracted assets in the energy and environment sectors, today announced its fourth asset acquisition:
Abengoa Yield has entered into a definitive agreement with Abengoa to acquire Solaben 1/6, a 100 MW solar complex in Spain, which has been in operation since 2013, showing a solid operational track record and synergies with our existing portfolio.
In addition, Abengoa Yield announced its first two acquisitions from third parties:
- it has closed the acquisition of ATN2 from Abengoa, after improving the revenues this project generates, and including the stake in the project owned by a financial investor, which was not previously considered.
- it has agreed to acquire 13% of the stake owned by JGC in Solacor 1/2, where it already owns a 74% stake.
Total consideration amounts to $370 million and Abengoa Yield expects these new assets to generate incremental run rate cash available for distribution of approximately $31.5 million per year before debt service associated with acquisition financing. The acquisition will be financed with the revolving credit facility recently increased in $290 million and cash on hand. With this transaction, Abengoa Yield reaches total acquisitions of approximately $1.5 bn since its initial public offering at an average acquisition yield of approximately 9%.
Javier Garoz, CEO of Abengoa Yield, said "This fourth acquisition reinforces our consistent growth and shows a first acquisition form third parties of assets we know well. All our assets are showing strong operational performance providing solid results for the quarter that we will announce on July 30. We are glad to continue delivering on our commitments with our shareholders."
The transaction has been approved by Abengoa Yield's board of directors with the approval of independent directors. Solaben 1/6 and ATN2 transactions have been approved by Abengoa's board of directors.
About Abengoa Yield
Abengoa Yield is a total return company that owns a diversified portfolio of contracted renewable energy, power generation, electric transmission and water assets in North America, South America and EMEA. We focus on providing a predictable and growing quarterly dividend or yield to our shareholders (www.abengoayield.com).
Forward-Looking Statements
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Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, changes in government expenditure budgets, challenges in making acquisitions, changes in public support of renewable energy, weather conditions, legal challenges to regulations, changes to subsidies and incentives that support renewable energy sources, government regulations, the volatility of energy and fuel prices, counterparty credit risk, failure of customers to perform under contracts, our ability to enter into new contracts as existing contracts expire, reliance on third-party contractors and suppliers, failure of newly constructed assets to perform as expected, failure to receive dividends from assets, changes in our tax position, unanticipated outages at our generation facilities, the condition of capital markets generally, our ability to access capital markets, adverse results in current and future litigation and our ability to maintain and grow our quarterly dividends. Furthermore, any dividends are subject to available capital, market conditions, and compliance with associated laws and regulations. These factors should be considered in connection with information regarding risks and uncertainties that may affect Abengoa Yield's future results included in Abengoa Yield's filings with the U.S. Securities and Exchange Commission at www.sec.gov.
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