US-based energy provider Southern Power has signed an agreement to sell 33% minority interest in its solar portfolio to Global Atlantic Financial Group in a deal valued at $1.175bn.
Under the terms of the deal, Global Atlantic will acquire 26 operating solar facilities representing nearly 1.7GW of capacity.
The energy generated by these facilities will be sold under long-term contracts with customers across the country.
Southern Power, through its subsidiaries, will act as the general partner in the partnership and maintain overall operational responsibilities for the projects.
Southern Power president and CEO Mark Lantrip said: “We are excited about our new partnership with Global Atlantic. Our partnership has strong strategic alignment, as we are both focused on delivering long-term value to our customers and stakeholders.
“We look forward to working alongside Global Atlantic as we continue our work to provide clean, safe, reliable and affordable wholesale energy to our customers across the US.”
Southern Power is a subsidiary of Southern Company and meets the electricity needs of municipalities, electric cooperatives, investor-owned utilities and other energy customers.
Currently, the company and its subsidiaries own 48 facilities located across 11 states in the US including Alabama, California, Florida, Georgia, Maine, Minnesota, Nevada, New Mexico, North Carolina, Oklahoma and Texas, with a combined generating capacity of 12,200MW.
For this transaction, Citigroup Global Markets is serving as the financial advisor and Jones Day is serving as legal counsel to Southern Power.