Mohit Hajarnis
Long/short equity, special situations, REITs

Overblown Liquidity Concerns Given 8Point3 Franchise Strength

Intro

8Point3 Energy Partners (NASDAQ:CAFD) is a yield-oriented limited partnership between SunPower (NASDAQ:SPWR) and First Solar (NASDAQ:FSLR) formed to own, operate, and acquire solar energy assets. It IPO'ed in mid-2015 for $21 per share, but is trading at $16.20 (a/o close on February 5, 2016), 23% below its initial offering price. During that time, the company's entire portfolio has reached commercial operation, both parent sponsors have increased the number of projects eligible for drop-down, management beat cash flow available for distribution guidance by $1.0mm, and the wider solar industry has won legislative / regulatory victories with the extension of the Solar Investment Tax Credit (ITC) and California Net Metering ruling. Nonetheless, the market has

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