SPI Solar (“SPI”) ( OTCBB: SOPW) a leading vertically integrated photovoltaic (“PV”) solar developer, and engineering, procurement and construction (“EPC”) services provider, today announced that it has closed a transaction with KDC Solar Credit LS LLC, an affiliate of KDC Solar LLC (“KDC Solar”), for the purchase of approximately $42 million of high-quality LDK solar modules all to be delivered to KDC this year. In June 2011 SPI announced that the Company and its majority shareholder, LDK Solar (“LDK”), had entered into a three-year agreement with KDC Solar to serve as KDC Solar’s preferred provider of EPC and operations and maintenance (“O&M”) services for a significant portion of KDC Solar’s portfolio of solar energy facility (“SEF”) projects. The LDK modules to be procured by SPI in this transaction are expected to be used in a variety of KDC Solar projects.
“This transaction underscores the value of our relationship with KDC,” said Stephen Kircher, CEO of SPI. “The KDC Solar pipeline continues to ramp as we pursue multiple new projects together that should continue to build our revenue into the next few years,” Mr. Kircher concluded.
“This order represents only a portion of the total expected orders that should result from our preferred provider agreement with SPI and LDK,” said Alan Epstein, President and COO of KDC Solar. “All of the modules in this $42-million transaction will be used for behind-the-meter projects in New Jersey as we continue to work with our customers to lower their cost of operations and preserve and create jobs within this state through clean solar power.”
“I am very pleased with this transaction and with the results of our agreement with KDC Solar thus far,” said Xiaofeng Peng, LDK’s Chairman and CEO. “I look forward to continued success as more projects are identified and started.”