Canadian Solar Inc. today announced that it has completed the acquisition of Recurrent Energy, LLC from Sharp Corporation. The transaction was supported by Export Development Canada (EDC)'s issuance of Performance Security Guarantee of up to $75 million to backstop letters of credit issued against project development obligations by Recurrent Energy. In addition, in conjunction with the acquisition, Credit Suisse will provide Recurrent Energy with a US$150 million, one year senior secured bridge loan.
The acquisition of Recurrent has increased Canadian Solar's total solar project pipeline by approximately 4.0GW to a total of 8.5GW. Recurrent's seven late-stage projects totalling approximately 1.0GW are located in California and Texas and are expected to be built and connected to the grid prior to the ITC expiration at the end of 2016.
"I am honored to lead this exceptional team, with our new parent Canadian Solar, as we further strengthen our position in North America's solar energy market," said David Brochu, CEO of Recurrent Energy. "We look forward to transitioning our business model to own and operate assets, as we embark on construction of more than 1GW of solar PV projects over the next two years."
"With the acquisition of Recurrent Energy our significantly expanded, globally diverse project pipeline places Canadian Solar firmly among the leading global solar energy companies," said Dr. Shawn Qu, Canadian Solar Chairman and Chief Executive Officer. "We believe that with David's leadership and experience at Recurrent, we can continue to build on our proven solar energy development track record to create lasting value for our shareholders."