SunEdison looks at restructuring options to enhance shareholder value

SunEdison (NYSE: SUNE) announced May 11 that it is reviewing strategic alternatives to more effectively align the company structure as a sponsor in a long-term asset ownership platform, through its TerraForm Power “yieldco” platform.

The most efficient and commonly utilized structure by sponsors of yield vehicles is the general partnership (GP) structure in a master limited partnership (MLP). SunEdison said it is considering a range of alternatives that will drive greater value and enable the efficient return of capital to shareholders, while maximizing its growth opportunities.

“Given the transformative activities that we have undertaken over the past year, including accelerating the value of SunEdison’s IDRs in TerraForm Power and progress growing the TerraForm platform, a thorough review of the Company structure is deemed prudent given our transition into a sponsor of long-term asset ownership vehicles,” said Ahmad Chatila, President and Chief Executive Officer of SunEdison. “This review is part of our strategic effort to more effectively position the company to maximize shareholder value.”

The company’s Board of Directors authorized this strategic review. SunEdison expects to conclude this review before the end of the year. However, no specific timetable has been set, and there can be no assurance that any transaction will take place. Likewise, no decision has been made on the timing or terms of any such transaction if one were to occur.

SunEdison develops, finances, installs, owns and operates renewable power plants, delivering predictably priced electricity to its residential, commercial, government and utility customers. SunEdison is one of the world’s largest renewable energy asset managers and provides customers with asset management, operations and maintenance, monitoring and reporting services. Corporate headquarters are in the United States with additional offices and technology manufacturing around the world.

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.