M&A: Sales process for DG developer Navisun expected to launch shortly
OMERS Infrastructure is expected to launch a process to sell distributed generation developer Navisun LLC as soon as the week of April 14, said sources familiar with the situation.
The process comes amidst a glut of developers in the distributed generation space looking for a capital markets transaction. While distributed generation developers have remained resilient from an investor standpoint, NaviSun has not grown as aggressively as some of its peers, noted those same sources.
OMERS hired Nomura Greentech earlier this year to run the process.
OMERS declined comment on the situation. Navisun did not return calls seeking comment.
OMERS acquired Navisun from funds managed by Ares Management in November 2021. The company has grown its operational portfolio to beyond 100 MW in operation under OMERS, but industry sources note that other sponsor-backed companies in the space would target growth trajectories of 100 MW per annum.
The company secured USD 235m in debt financing in May 2023 through two facilities: a USD 105m, five-year revolver with a letter-of-credit facility and a USD 130m, five-year term loan. MUFGled the financing for both facilities.
Navisun built a series of community solar projects in historically strong community solar markets such as Maine and Massachusetts, but it has ventured into other markets, according to NPM queue data.
Resilience
In spite of concerns about thinning margins and growth opportunities, it has not stopped investment in distributed generation this year.
Apollo, an incumbent sponsor in Summit Ridge Energy, announced a USD 400m investment at the project level for a portfolio of commercial assets in Illinois, Carlyle agreed to an add-on investment in Aspen Power and finally, TPG Rise executed a take private of Altus Power.
Behind them is a laundry list of DG developers, where sponsors are looking for an exit and/or developers are looking for a capital raise. This includes the likes of Onyx Renewables, Green Lantern Solar, Radial Power, Pivot Energy,Dimension Energy and Coast Energy.
Separately, publicly-traded Emeren Group said in late March it had also received a take private bid for the business.
*This story was originally published exclusively for NPM US subscribers.
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