{"id":385831,"date":"2020-11-20T06:33:06","date_gmt":"2020-11-20T11:33:06","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=385831"},"modified":"2020-11-20T06:33:06","modified_gmt":"2020-11-20T11:33:06","slug":"clearway-energy-inc-signs-binding-agreement-to-acquire-an-additional-35-interest-in-the-290-mw-agua-caliente-solar-project","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/clearway-energy-inc-signs-binding-agreement-to-acquire-an-additional-35-interest-in-the-290-mw-agua-caliente-solar-project\/","title":{"rendered":"Clearway Energy, Inc. Signs Binding Agreement to Acquire an Additional 35% Interest in the 290 MW Agua Caliente Solar Project"},"content":{"rendered":"
\n

PRINCETON, N.J., Nov. 20, 2020 (GLOBE NEWSWIRE) — Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) (\u201cCompany\u201d) today announced that it has entered into an agreement to acquire a 35% interest in the Agua Caliente solar project. Agua Caliente is a 290 MW utility-scale solar project located in Dateland, Arizona in which Clearway currently owns a 16% equity interest. The project has a 25-year PPA with PG&E, with approximately 19 years remaining under the agreement. The Company will acquire the additional 35% interest in Agua Caliente for $202 million, and this acquisition is expected to provide incremental annual asset CAFD on a five-year average basis of $20 million prior to corporate financing.<\/p>\n

“The additional interest in Agua Caliente is a great addition to the Company\u2019s portfolio,\u201d said Christopher Sotos, Clearway Energy, Inc.\u2019s President and Chief Executive Officer. \u201cWith this investment, Clearway adds additional technology and cash flow diversification with an increase in solar ownership, improved portfolio overall weighted average contract duration, and growth at attractive economics.\u201d<\/p>\n

Subject to customary closing conditions, the Company expects to close the transaction in the first quarter of 2021. The Company expects to fund the acquisition with existing liquidity and, subject to market conditions, new corporate financings. Following the close of the transaction Clearway will own a 51% equity interest in Agua Caliente. As a result, the Company will consolidate the project in its financial statements, which includes the project\u2019s $735 million of non-recourse project debt1<\/sup>. The project\u2019s non-recourse debt is fully amortizing and matures in 2037.<\/p>\n

\n About Clearway Energy, Inc.<\/strong>\n <\/p>\n

Clearway Energy, Inc.\u00a0is a leading publicly-traded energy infrastructure investor focused on modern, sustainable and long-term contracted assets across\u00a0North America. Clearway Energy\u2019s environmentally-sound asset portfolio includes over 7,000 megawatts of wind, solar and natural gas-fired power generation facilities, as well as district energy systems. Through this diversified and contracted portfolio,\u00a0Clearway Energy\u00a0endeavors to provide its investors with stable and growing dividend income. Clearway Energy\u2019s Class C and Class A common stock are traded on the\u00a0New York Stock Exchange\u00a0under the symbols CWEN and CWEN.A, respectively.\u00a0Clearway Energy, Inc.\u00a0is sponsored by its controlling investor\u00a0Global Infrastructure Partners III\u00a0(GIP), an independent infrastructure fund manager that invests in infrastructure and businesses in both OECD and select emerging market countries, through GIP\u2019s portfolio company,\u00a0Clearway Energy Group.<\/p>\n

________________________________
1<\/sup> As of September 30, 2020<\/p>\n

\n Safe Harbor Disclosure<\/strong>\n <\/p>\n

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be identified by the use of words such as \u201cexpect,\u201d \u201cestimate,\u201d \u201canticipate,\u201d \u201cforecast,\u201d \u201cplan,\u201d \u201coutlook,\u201d \u201cbelieve\u201d and similar terms.\u00a0 Such forward-looking statements include, but are not limited to, statements regarding impacts related to COVID-19 or any other pandemic, the benefits of the relationship with Global Infrastructure Partners III (GIP) and GIP\u2019s expertise, the Company\u2019s future relationship and arrangements with GIP and Clearway Energy Group, as well as the Company’s Net Income, Adjusted EBITDA, Cash from Operating Activities, Cash Available for Distribution, the Company\u2019s future revenues, income, indebtedness, capital structure, strategy, plans, expectations, objectives, projected financial performance and\/or business results and other future events, and views of economic and market conditions.<\/p>\n

Although Clearway Energy, Inc. believes that the expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, impacts related to COVID-19 or any other pandemic, general economic conditions, hazards customary in the power industry, weather conditions, including wind and solar performance, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets, changes in government regulations, the condition of capital markets generally, the Company’s ability to access capital markets, cyber terrorism and inadequate cybersecurity, the ability to engage in successful acquisitions activity, unanticipated outages at its generation facilities, adverse results in current and future litigation, failure to identify, execute or successfully implement acquisitions (including receipt of third party consents and regulatory approvals), the Company’s ability to enter into new contracts as existing contracts expire, risk relating to the Company’s relationships with GIP and Clearway Energy Group, the Company’s ability to acquire assets from GIP, Clearway Energy Group or third parties, the Company’s ability to close drop down transactions, and the Company’s ability to maintain and grow its quarterly dividends. Furthermore, any dividends are subject to available capital, market conditions, and compliance with associated laws and regulations.<\/p>\n

Clearway Energy, Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Adjusted EBITDA and Cash Available for Distribution are estimates as of today\u2019s date\u00a0and are based on assumptions believed to be reasonable as of this date. Clearway Energy, Inc. expressly disclaims any current intention to update such guidance. The foregoing review of factors that could cause Clearway Energy, Inc.\u2019s actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect Clearway Energy, Inc.\u2019s future results included in Clearway Energy, Inc.\u2019s filings with the Securities and Exchange Commission at www.sec.gov. In addition, Clearway Energy, Inc. makes available free of charge at www.clearwayenergy.com, copies of materials it files with, or furnishes to, the Securities Exchange Commission.<\/p>\n

\n Contacts:<\/strong>\n <\/p>\n\n\n\n\n\n
Investors:<\/td>\n\n Media:<\/strong>\n <\/td>\n<\/tr>\n
Akil Marsh<\/td>\nZadie Oleksiw<\/td>\n<\/tr>\n
\n investor.relations@clearwayenergy.com<\/a>
\n \n <\/td>\n		\n media@clearwayenergy.com<\/a>
\n \n <\/td>\n<\/tr>\n
609-608-1500<\/td>\n202-836-5754<\/td>\n<\/tr>\n<\/table>\n

\n
\n
\n <\/strong>\n <\/p>\n

\n Appendix Table A-1: Adjusted EBITDA and Cash Available for Distribution Reconciliation<\/strong>\n <\/p>\n

The following table summarizes the calculation of Estimated Cash Available for Distribution and provides a reconciliation to Net Income\/(Loss):<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n ($ in millions)<\/em>\n <\/td>\n\u00a0<\/td>\n\n
\n 5-Year Average<\/strong>\n <\/td>\n<\/tr>\n
\n Net Income<\/strong>\n <\/td>\n\u00a0<\/td>\n\n $<\/strong>\n <\/td>\n\n 33<\/strong>\n <\/td>\n\u00a0<\/td>\n<\/tr>\n
Interest Expense, net<\/td>\n\u00a0<\/td>\n19<\/td>\n\u00a0<\/td>\n<\/tr>\n
Depreciation, Amortization, and ARO Expense<\/td>\n\u00a0<\/td>\n54<\/td>\n\u00a0<\/td>\n<\/tr>\n
Adjustment to reflect CWEN share of Adjusted EBITDA in unconsolidated affiliates<\/td>\n\u00a0<\/td>\n(12<\/td>\n)<\/td>\n<\/tr>\n
\n Adjusted EBITDA<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 94<\/strong>\n <\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash interest paid<\/td>\n\u00a0<\/td>\n(18<\/td>\n)<\/td>\n<\/tr>\n
Pro-rata Adjusted EBITDA from unconsolidated affiliates<\/td>\n\u00a0<\/td>\n18<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash distributions from unconsolidated affiliates<\/td>\n\u00a0<\/td>\n(9<\/td>\n)<\/td>\n<\/tr>\n
\n Cash from Operating Activities<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 85<\/strong>\n <\/td>\n\u00a0<\/td>\n<\/tr>\n
Net distributions to non-controlling interest<\/td>\n\u00a0<\/td>\n(28<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Principal amortization of indebtedness<\/td>\n\u00a0<\/td>\n(37<\/td>\n)<\/td>\n<\/tr>\n
\n Estimated Cash Available for Distribution<\/strong>\n <\/td>\n\u00a0<\/td>\n\n $<\/strong>\n <\/td>\n\n 2<\/strong>
\n 0<\/strong>\n <\/td>\n		\u00a0<\/td>\n<\/tr>\n<\/table>\n

\n
\n
\n <\/strong>\n <\/p>\n

\n Non-GAAP Financial Information<\/strong>\n <\/p>\n

\n
\n EBITDA and Adjusted EBITDA<\/em>
\n <\/strong>\n <\/p>\n

EBITDA, Adjusted EBITDA, and Cash Available for Distribution (CAFD) are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The presentation of non-GAAP financial measures should not be construed as an inference that Clearway Energy\u2019s future results will be unaffected by unusual or non-recurring items.<\/p>\n

EBITDA represents net income before interest (including loss on debt extinguishment), taxes, depreciation and amortization. EBITDA is presented because Clearway Energy considers it an important supplemental measure of its performance and believes debt and equity holders frequently use EBITDA to analyze operating performance and debt service capacity. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are:<\/p>\n