MN8 Energy Exercises Purchase Option for US Solar Fund’s 50% Interest in Mount Signal 2 Solar Farm

US Fund (USF) has announced that , formerly known as Goldman Sachs Renewable Power, has exercised its option to purchase USF's 50% stake in the 200MW DC Mount Signal 2 (MS2) solar farm.

Under the terms of the option, MN8 will acquire USF's interest in MS2 for $52.2 million, excluding working capital, plus a non-refundable option fee of $1 million.

This is consistent with the last published net asset value for MS2 prior to the grant of the option. The sale is expected to result in a gross return of approximately 11% per annum since USF announced its agreement to acquire up to 50% of MS2 from New Energy Solar in December 2020.

The transaction is expected to close in the second quarter of 2023, subject to regulatory and financier consents. This sale will not impact the Strategic Review and Formal Sale Process announced on October 17, 2022.

MS2 is a solar farm located in Southern California and its entire output is sold to Southern California Edison under a 20-year power purchase agreement that began in June 2020.

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