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SunEdison +9.1%; S-1 filed, name given for solar project spinoff

  • SunEdison (SUNE) has christened its solar project spinoff (formerly just known as YieldCo) TerraForm Power, and has filed an S-1. Goldman, Barclays, and Citi will act as the IPO underwriters.
  • TerraForm will trade under the symbol TERP, and will initially own projects (in the U.S., U.K., Canada, and Chile) with a nameplate capacity of 523.8MW. All of the projects have long-term power purchasing agreements attached; the average remaining lifespan is 18 years.
  • Between the IPO and the end of 2016, SunEdison will have to offer TerraForm solar projects expected to generate at least $175M in cash available for distribution within the first 12 months of their commercial operations dates.
  • SunEdison hasn't yet disclosed how large its stake will be post-IPO; it previously said it's looking to sell a 20%-30% stake, and raise up to $300M for new projects. The company added the spinoff is expected to pay a dividend.
  • The company's chip wafer unit turned in a moderately successful IPO last week.
  • Previous: YieldCo obtains $250M in financing from Goldman
Comments (6)
  • maybenot
    , contributor
    Comments (4688) | Send Message
     
    Been waiting for this. Here we go...
    29 May 2014, 01:13 PM Reply Like
  • EysteinH
    , contributor
    Comments (257) | Send Message
     
    Oh this is really great. I am going to watch this IPO carefully.
    29 May 2014, 02:54 PM Reply Like
  • 11146471
    , contributor
    Comments (1164) | Send Message
     
    I believe they should offer at least a 6-7% D.Y. to be considered by large portfolios.
    29 May 2014, 05:52 PM Reply Like
  • maybenot
    , contributor
    Comments (4688) | Send Message
     
    111 -- maybe. I dunno.

     

    But I hope they shoot for a yield around 4-5%. And also speak about wanting to steadily grow it each year.

     

    Seems that would show maturity & commitment to the big boys who might want some.

     

    Plus, not that anybody cares, it's what I would want as an investor.
    29 May 2014, 07:03 PM Reply Like
  • 11146471
    , contributor
    Comments (1164) | Send Message
     
    maybenot 7% plus levels are offered already by some very good Canadian yield cos so I wouldn't invest for less.
    30 May 2014, 12:59 PM Reply Like
  • maybenot
    , contributor
    Comments (4688) | Send Message
     
    111 --- ok, cool.

     

    I had in mind what was 'usually' offered for a utility yield in the US.

     

    Since, in my mind, this is what TERP will more or less be. Maybe I'm wrong.
    30 May 2014, 01:23 PM Reply Like
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