Clearway Energy Exercises Backstop With GIP For Carlsbad Energy Center
In announcing an update to financial guidance, Clearway Energy said that it is currently not pursuing acquisition of the remaining interest in Agua Caliente from NRG Energy, Inc.
On November 1, 2018, NRG offered the Company the opportunity to acquire Agua Caliente Borrower 1 LLC, which owns a 35% interest in Agua Caliente, a 290 MW utility-scale solar project located in Dateland, Arizona with PG&E as the project’s customer. Clearway has elected to forgo the acquisition at this time.
Furthermore, Clearway said that it plans to exercise the equity backstop with GIP for the acquisition of the Carlsbad Energy Center when the transaction with NRG Energy, Inc. (NRG) closes, now expected in late February 2019. After considering final purchase price adjustments, GIP is expected to acquire Carlsbad from NRG for $387 million. Pursuant to the terms previously agreed by and between Clearway and GIP, Clearway maintains the option for a period of eighteen (18) months to acquire Carlsbad from GIP at the same terms and conditions previously negotiated with NRG.