Altus Power Announces Closing of 121 Megawatts in Solar Assets from Basalt and Soltage
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The acquisition of Project Hyperion by Altus Power, Inc. represents a strategic expansion in the solar energy sector, particularly enhancing its footprint in the Southeastern United States. The transaction not only increases Altus Power's solar assets by 121 megawatts but also diversifies its customer base by including government and municipal entities. This move is indicative of a growing trend in the energy industry towards renewable sources, which could potentially improve the company's long-term profitability and sustainability.
The financial aspects of the deal, such as the $163 million draw from the Blackstone funding facility at a fixed interest rate of 6.70%, are critical for evaluating the company's leverage and cost of capital. This draw includes financing for the Hyperion acquisition and additional capital for future asset growth. Investors should monitor how this debt influences the company's balance sheet and its ability to generate returns on these investments.
Altus Power's acquisition of Hyperion underscores the competitive dynamics within the commercial-scale solar power industry. By bolstering its presence in the Southeast, Altus Power may benefit from regional incentives for renewable energy and increased demand from government and municipal clients aiming to meet sustainability objectives. The company's growth plan to reach nearly 900 MWs by the end of 2023 indicates an aggressive scaling strategy.
However, the success of such expansions relies on operational efficiency and asset optimization. Partnerships with firms like Basalt Infrastructure Partners LLC and Soltage, LLC, which have a track record in developing commercial-scale solar projects, could provide Altus Power with valuable expertise to enhance asset performance and customer management.
The involvement of multiple legal advisors in the transaction, such as Stoel Rives LLP, Winston & Strawn LLP, Foley Hoag LLP and Parker Poe Adams & Bernstein LLP, highlights the complexity of acquisitions in the energy sector. Legal due diligence is crucial to ensure compliance with regulations, particularly when the acquisition involves government and municipal contracts.
For stakeholders, the legal soundness of the deal is paramount as it mitigates risks associated with regulatory compliance and contract enforceability. It is essential for Altus Power to maintain robust legal frameworks to support its expansion and safeguard against potential litigation or regulatory challenges.
Expands its presence in the Southeast
“We are pleased to welcome new solar customers to the Altus portfolio and look forward to working with these high-quality government and municipal agencies to help them reach their sustainability goals through the use of clean, electric power,” said Gregg Felton, co-CEO, Altus Power. “Basalt and Soltage are important partners and their successful development of commercial scale solar complements our strengths in optimizing asset performance and providing superior customer management.”
“It was a pleasure to work alongside Soltage over the last seven years to build a high quality and diversified portfolio of solar assets,” said Wil Jones, Partner at Basalt. “Altus will be an excellent operator for the Hyperion portfolio going forward.”
Altus Power continues to drive plans to grow its portfolio of commercial scale solar assets to almost 900 MWs by the end of 2023. Altus Power currently owns and operates distributed solar arrays across 25 states, delivering clean, electric power at a discount to enterprises and households.
Altus Power additionally announced plans for an incremental draw of
Stoel Rives LLP served as legal advisor to Altus Power. Marathon Capital Markets LLC served as exclusive financial advisor to Basalt and Soltage. Winston & Strawn LLP served as legal advisor to Basalt. Foley Hoag LLP served as legal advisor to Soltage. Parker Poe Adams & Berstein LLP served as legal advisor to Basalt and Soltage.
About Altus Power
Altus Power, based in
About Basalt
Basalt is the investment advisor to infrastructure equity investment funds focusing on mid-market investments in utilities, power, transport, and communications infrastructure in
For more information, please visit www.basaltinfra.com
About Soltage
Soltage is a leading developer, owner, and operator of distributed utility-scale solar and storage assets for utility, commercial, industrial, and municipal customers across
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements may be identified by the use of words such as "aims," "believes," "expects," "intends," "may," “could,” "will," "should," "plans," “projects,” “forecasts,” “seeks,” “anticipates,” “goal,” “objective,” “target,” “estimate,” “future,” “outlook,” "strategy," “vision,” or variations of such words or similar terminology that predict or indicate future events or trends or that are not statements of historical matters. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Altus Power’s future prospects, developments and business strategies. These statements are based on Altus Power’s management’s current expectations and beliefs, as well as a number of assumptions concerning future events.
Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Altus Power’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (1) failure to obtain required consents or regulatory approvals in a timely manner or otherwise; (2) the ability of Altus Power to retain customers and maintain and expand relationships with business partners, suppliers and customers; (3) the ability of Altus Power to successfully integrate the acquisition of solar assets into its business and generate profit from their operations; (4) the risk that pending acquisitions may not close in the anticipated timeframe or at all due to a closing condition not being met (5) the risk of litigation and/or regulatory actions related to the proposed acquisition of solar assets; and (6) the possibility that Altus Power may be adversely affected by other economic, business, regulatory, credit risk and/or competitive factors.
Additional factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found under the heading “Risk Factors” in Altus Power’s Form 10-K filed with the Securities and Exchange Commission on March 30th, 2023, as well as the other information we file with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made and the information and assumptions underlying such statement as we know it and on the date such statement was made, and Altus Power undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.
This press release is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Altus Power and is not intended to form the basis of an investment decision in Altus Power. All subsequent written and oral forward-looking statements concerning Altus Power or other matters and attributable to Altus Power or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.
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Chris Shelton, Head of Investor Relations
mediarelations@altuspower.com
Source: Altus Power, Inc.
FAQ
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