SunEdison raises money for First Wind takeover deal

SunEdison Inc. (NYSE: SUNE) said Jan. 16 that it had raised a total of $590m to fund its pending acquisition of First Wind, a major wind project developer.

SunEdison raised $190m through the secondary offering of SunEdison Semiconductor shares. As previously announced, the secondary offering of SunEdison Semiconductor shares was priced on Jan. 14, through which SunEdison sold approximately 12.9 million shares. In addition, SunEdison has secured a $400m credit commitment from several SunEdison relationship financial institutions for a 24-month loan secured with a portion of SunEdison’s shares in “yieldco” affiliate TerraForm Power. The $590m in proceeds from these transactions will be used to fund the cash portion of the upfront consideration to purchase First Wind.

“These funds are a major step forward in our acquisition of First Wind,” said Brian Wuebbels, Chief Financial Officer of SunEdison. “Our ability to secure this funding, while preserving the upside in value from our ownership in TerraForm Power, speaks to the strength of the growth platform we are creating.”

On Nov. 17, 2014, SunEdison and TerraForm Power announced that they had signed a definitive agreement to acquire First Wind for $2.4bn, of which  SunEdison’s upfront portion of the consideration is approximately $1bn, comprised of the previously announced $340m seller convertible note and the remainder in cash.

The acquisition is expected to close during the first quarter of 2015, subject to usual and customary conditions and regulatory approvals. The Federal Energy Regulatory Commission approved the deal on Jan. 12, while the New York State Public Service Commission on Jan. 13 approved the deal as it relates to affected wind power plants in that state.

SunEdison is a global leader in transforming how energy is generated, distributed and owned. It manufactures solar technology and develops, finances, installs and operates distributed solar power plants, delivering predictably priced electricity and services to its residential, commercial, government and utility customers.  SunEdison has offices in North America, Europe, Latin America, Africa, India and Asia.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.