ATN snaps up 46 MW of distributed solar assets in US

Dec 30, 2014 - US telecommunications services group Atlantic Tele-Network Inc (NASDAQ:ATNI), or ATN, said yesterday it has acquired the owner of 45.7 MW of distributed generation solar parks.

More specifically, ATN took over Green Lake Capital LLC and some of its affiliates under a deal valued at about USD 103 million (EUR 85m). It paid for the acquisition with USD 64 million in cash and assumed USD 39 million of debt through its newly-established unit Ahana Renewables LLC. The buyer will keep the management team and personnel that operates the solar assets, it noted.

The 28 target facilities are situated on the roofs of 59 buildings in Massachusetts, California and New Jersey. All of them have been operational for at least a year and are generating revenue under long-term power purchase agreements. According to ATN’s estimates, the assets will produce a 10% levered cash-on-cash internal rate of return before additional investments and growth. In addition, the deal is seen to start adding to its operating cash flow and earnings before interest, tax, depreciation and amortisation (EBITDA) in the first quarter of 2015. Nevertheless, it is expected to be modestly dilutive to the company’s bottom line due to the assumed project debt.

ATN expects to get between USD 19 million and USD 22 million in revenues from the acquired assets.

(USD 1.0 = EUR 0.824)

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