Solar yieldco 8point3 increases FY guidance

Sunpower modules. Author: pgegreenenergy. License: Creative Commons, Attribution 2.0 Generic.

US solar power yieldco 8point3 Energy Partners LP (NASDAQ:CAFD) on Tuesday increased its guidance for its fiscal year through November 2016, after exceeding targets for the third quarter.

The company, created by SunPower (NASDAQ:SPWR) and First Solar Inc (NASDAQ:FSLR), reported cash available for distribution (CAFD) of USD 24.1 million (EUR 21.6m) for June-August 2016, compared to a guidance of USD 20 million-21 million and a USD-6.7-million result a year ago.

Details of the company's third-quarter performance and its fourth-quarter and full-year guidance are available in the table below.

Figure (in USD million)	Fiscal Q3	Fiscal Q4	FY to Nov 30
Revenue	26.1	13.5 -14.5	60.2 - 61.3
Net income (loss)	15.9	(1) to breakeven	7.7 - 8.7
Adjusted EBITDA	32.9	17 - 18	75 - 76
CAFD	24.1	22 - 24	74.8 - 76.8

Chief executive Chuck Boynton said the results reflect the benefits of the company's "stable and diversified" solar project portfolio, which as of end-August, comprised interests in 530 MW of US solar generating assets.

8point3 also said a banking group has committed to funding a USD 250 million increase to its existing credit facility, with closing of the financing subject to definitive documentation being signed and other matters.

"With closing of our $250 million accordion credit facility, we will be well positioned to acquire additional projects as well as have sufficient resources to fund future growth," said chief financial officer Bryan Schumaker.

The company on Monday declared a distribution of USD 0.2406 per share for the third quarter, an increase of 3.5% over the preceding quarter. It expects to increase its fourth-quarter distribution also by 3.5%.

8point3 on Tuesday also announced a deal to buy a 49% stake in the 102-MW Henrietta solar project in California's San Luis Valley from SunPower.

(USD 1.0 = EUR 895)

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