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SunEdison planning solar project IPO, shares pare losses

  • SunEdison (SUNE -1.6%) CFO Brian Wuebbels tells Reuters his company plans to sell a 20%-30% stake in a solar project subsidiary through a U.S. IPO that could raise up to $300M for financing new projects. The offering currently has a Q2 2014 ETA.
  • The subsidiary, called SunEdison Yield Co, would own projects in the U.S., U.K., Japan, Canada, Mexico, and Chile, and likely pay a quarterly dividend. Wuebbels think Yield Co. would likely have $40M-$60M in distributable cash flow.
  • SunEdison is also thinking of doing a Hong Kong or Singapore IPO for its Asian and South African solar projects If it happens, that offering would follow the U.S. IPO by a few months.
  • Both prospective IPOs are separate from the $250M offering SunEdison is planning for its chip wafer ops.
  • Down over 4% earlier today, shares have pared their losses following Wuebbels' remarks. They took off earlier this month after SunEdison provided strong Q3 numbers and Q4 guidance, and raise the possibility of spinning off some of its solar assets.
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