SunEdison has filed an S-1 for its anticipated solar project spinoff. The spinoff, named TerraForm Power, will own a slew of SunEdison-built solar projects, while generating revenue (and distributing related cash flows) from electricity sale agreements.
The IPO might pave the way for other companies with sizable downstream project portfolios, such as First Solar (FSLR +2.8%), JinkoSolar (JKS +9.7%), and Trina (TSL +8.2%), to do spinoffs of their own. SunEdison's move comes after SolarCity (SCTY +5.6%) twice raised funds by selling solar asset-backed notes.
Solar stocks are following SunEdison higher (TAN +2.6%). In addition to the aforementioned companies, gainers include SunPower (SPWR +2.5%), Yingli (YGE +3.5%), Canadian Solar (CSIQ +4.6%), and Daqo (DQ +1.5%).