Ormat closes follow-on sale of interest in second phase of geothermal plant
Ormat Technologies announced that its wholly-owned subsidiary, Ormat Nevada Inc., closed a follow-on equity transaction with Northleaf Capital Partners. Northleaf purchased a 36.75% equity interest in the second phase of the Don A. Campbell power plant for a purchase price of $44.2M. The 20.5 MW second phase of the Don A. Campbell geothermal power plant commenced operation in September 2015 and sells its electricity to Southern California Public Power Authority under a 20-year Power Purchase Agreement. Following the closing, the power plant was contributed to the existing ORPD joint venture, as agreed upon under the terms of ORPD's limited liability company agreement executed by Ormat and Northleaf on April 30, 2015. The purchase price of $44.2M implies a total transaction value of approximately $120M and represents approximately 11.5x multiple on the second phase of Don A. Campbell's 2016 estimated EBITDA and adjusted EBITDA.