South Jersey Industries: SJI Announces Sale of Solar Portfolio
June 28 2018 - 8:42AM
Media
Contact: Marissa Travaline
(609) 561-9000 ext. 4227
mtravaline@sjindustries.com
Investor Contact: Dan
Fidell
(609) 561-9000 ext. 7027
dfidell@sjindustries.com
FOR IMMEDIATE RELEASE
SJI Announces Sale of Solar
Portfolio
FOLSOM, NJ, June 28, 2018 -
SJI (NYSE: SJI) has entered into an agreement to sell its portfolio
of solar energy projects to an entity managed by Goldman Sachs
Asset Management (GSAM) for approximately $350 million in cash.
Through its wholly-owned subsidiary, Marina
Energy, SJI owns 76 distributed solar energy projects with total
capacity of 204 MW. The projects, located at 143 sites across New
Jersey, Maryland, Massachusetts and Vermont, provide power to
schools, hospitals, and commercial and industrial
facilities.
"This transaction represents the latest chapter in
our ongoing effort to transform our business by monetizing
non-core, non-regulated businesses and increasing investments in
regulated assets that provide highly-visible cash flows and
earnings" said Michael J. Renna, President and CEO, SJI. "We are
pleased to partner with GSAM in transitioning these high-quality
assets to new ownership."
Under the terms of the agreement, Marina will sell
all projects in the portfolio to GSAM and lease back certain
projects to preserve investment tax credits (ITCs) previously
received by the company. Marina will also sell GSAM the solar
renewable energy credits (SRECs) generated by the projects, which
will allow SJI to maximize its proceeds from the transaction.
The agreement calls for SJI to receive $63 million
of the purchase price within the next week, with the balance being
received over the next several months as individual projects in the
portfolio satisfy closing conditions. SJI currently expects nearly
all projects in the portfolio will satisfy their closing conditions
prior to December 31, 2018. SJI is committed to achieving optimal
deployment of the proceeds, including but not limited to, potential
repayment of outstanding indebtedness and potential reduced share
issuance under our existing forward equity agreement, as we
continue to reshape our business.
Guggenheim Securities, LLC is acting as exclusive
financial advisor and Akin, Gump, Strauss, Hauer and Feld, LLP is
acting as exclusive legal advisor to SJI in connection with this
transaction.
About SJI
SJI (NYSE: SJI), an energy services holding
company based in Folsom, NJ, delivers energy solutions to its
customers through three primary subsidiaries. South Jersey Gas
delivers safe, reliable, affordable natural gas and promotes energy
efficiency to approximately 385,000 customers in southern New
Jersey. SJI's non-utility businesses within South Jersey Energy
Solutions promote efficiency, clean technology and renewable energy
by providing customized wholesale commodity marketing and fuel
management services; acquiring and marketing natural gas and
electricity for retail customers; and developing, owning and
operating on-site energy production facilities. SJI Midstream
houses the company's interest in the PennEast Pipeline Project.
Visit http://www.sjindustries.com for more information about SJI
and its subsidiaries.
###
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: South Jersey Industries via Globenewswire
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