TerraForm Power: Empire Of The Sinking Sun; 100% Overvalued Under Realistic Assumptions
Henry Davies • 25 Comments
Henry Davies • 25 Comments
Mon, Aug. 29, 1:57 AM
- D.E. Shaw & Co is weighing a bid for SunEdison's (OTCPK:SUNEQ) controlling stake in TerraForm Power (NASDAQ:TERP), the bankrupt renewable energy producer's most valuable asset, Reuters reports.
- The hedge fund and its affiliates already own some TERP common shares after receiving them in an agreement announced last year upon forgiving debt owed by SunEdison.
- Appaloosa Management and Brookfield Asset Management (NYSE:BAM) have separately announced plans to jointly bid on the so-called "Class B" shares of TerraForm Power.
Thu, Aug. 25, 1:15 PM
- China's Golden Concord Holdings is seeking to acquire assets including U.S. solar farms from bankrupt SunEdison (SUNE) and is planning to bid for SUNE's controlling stake in TerraForm Power (TERP +1.1%), Bloomberg reports.
- A move by China's largest non-state owned solar company would pit it against a planned joint bid from Brookfield Asset Management (BAM -0.8%) and Appaloosa Management.
- While SUNE has not yet made a motion to sell the stake in bankruptcy court, the appearance of a rival could bring a runoff for who will be the first bidder in a court-supervised auction, the report says.
Thu, Aug. 11, 8:54 AM
- SunEdison (OTCPK:SUNEQ) yieldcos TerraForm Power (NASDAQ:TERP) and TerraForm Global (NASDAQ:GLBL) say they will delay filing their Q2 earnings reports (I, II).
- TERP and GLBL both say they had found material weaknesses in their internal controls over financial reporting due to SUNE, which had delayed its own filings after identifying material weaknesses in its financial reporting.
- The companies also have not yet filed their 2015 Form 10-K report or their 10-Q reports for Q1 2016.
Thu, Aug. 4, 4:45 PM
- Brookfield Renewable Partners (NYSE:BEP) says it considering a sale of its Ontario and Irish wind farm portfolios, as low interest rates create an attractive market for such assets.
- After building up its portfolio of wind farms in Canada over the past 10 years, BEP plans to test the market to see if it can get a premium for the assets, CEO Shachin Shah said during today's earnings conference call.
- Shah also says Brookfield also remains interested TerraForm Power (NASDAQ:TERP), while acknowledging that TERP's poison pill precludes the purchase of more shares for now.
- BEP posted a Q2 loss of $0.11/unit, down a $0.07 profit in the year-ago quarter, on lower power generation; funds from operations were flat Y/Y at $0.61/unit, below $0.67 analyst consensus estimate.
Thu, Aug. 4, 7:59 AM
- SunEdison (OTCPK:SUNEQ) says it plans to stop making interest payments on behalf of its two yieldcos, TerraForm Global (NASDAQ:GLBL) and TerraForm Power (NASDAQ:TERP), due to its Chapter 11 proceedings; SUNE does agree to pay interest on senior notes issued by GLBL and TERP.
- The two yieldcos say they will contest SUNE's "invalid" decision, but that they would be able to continue to service their debt with current liquidity and cash flow from operations.
Thu, Jul. 28, 11:51 PM
- TerraForm Power (NASDAQ:TERP) is setting up a formal auction to sell itself in September, Bloomberg reports.
- SunEdison (SUNE) is cooperating with TERP on the sales process, which will be run separately from the sale it is planning for its other wind and solar assets, according to the report.
- Brookfield Asset Management (NYSE:BAM) and Appaloosa Management are said to remain interested in acquiring control of TERP, and the two suitors reached out to SUNE about buying its Class B shares in TERP at a premium but were unable to make progress.
Tue, Jul. 26, 2:19 PM
- TerraForm Power (TERP +2.3%) is higher after releasing preliminary quarterly earnings, the first financial data released in eight months as it copes with the bankruptcy of its parent, SunEdison (SUNE).
- TERP says it posted an FQ1 loss of $32M-$46M, compared with a loss of $83.7 million in the year-ago quarter, on revenues of $151M-$159M, vs. $70.5M a year ago; the company says the results were better than its expectations.
- For FY 2015, TERP says it lost $181M-$203M, compared with a 2014 loss of $75.7M, on revenues of $467M-$473M, up from 2014 revenue of $125.9M.
- TERP also says it had faulty accounting controls, but that it had not found material misstatements; both SUNE and TerraForm Global (GLBL -1.3%) also said earlier that they had accounting systems problems.
Mon, Jul. 25, 7:15 AM
- SunEdison (OTCPK:SUNEQ) unit TerraForm Power (NASDAQ:TERP) has adopted a shareholders rights plan to prevent any sale of a significant number of Class A shares in the company by its bankrupt parent.
- The poison pill will be triggered if a party takes 15% ownership of TerraForm Power.
- Separately, SunEdison said it was working collaboratively with its two yieldcos to explore "value creation options" for the companies' Class B shares.
- TERP +4% premarket
- Previously: Brookfield, Appaloosa to make joint bid for SunEdison's TerraForm stake (Jul. 22 2016)
Fri, Jul. 22, 6:26 PM
- TerraForm Power (NASDAQ:TERP) +3.2% AH after Brookfield Asset Management (NYSE:BAM) discloses that it and Appaloosa Management will team up to bid for SunEdison's (OTCPK:SUNEQ) stake in TERP.
- BAM is TERP's largest shareholder, with 11.1M class A shares, a ~12.1% stake, and has entered into swap agreements to potentially buy nearly 11.6M additional shares, which gives it a 24.8% stake.
- Appaloosa is TERP's third ranking owner, with 8.7M shares, or 9.5%.
Wed, Jul. 20, 12:36 PM
- TerraForm Global (GLBL +10%) surges after saying it is in “active discussions’’ with its bankrupt parent SunEdison (SUNE) about a joint effort to sell SUNE’s controlling stake.
- GLBL says in a presentation that it and SUNE are in talks regarding “a jointly managed sales process and accompanying protocol for managing the marketing process."
- GLBL, which has not filed results since Q3 2015 because of its reliance on SUNE for some accounting systems, also says it expects Q1 revenue of $47M-$52M and reports a preliminary H2 loss of $335M-$350M and a preliminary Q1 loss of as much as $8M.
- Also, TerraForm Power (NASDAQ:TERP), SUNE's other yieldco, +3.2%.
Tue, Jul. 19, 12:58 PM
- SunEdison (SUNE) has received more than 100 indications of interest for specific assets but none for the company as a whole, Bloomberg reports.
- The bids for individual projects reportedly include bundles of wind and solar farms at various stages of development, SUNE's entire commercial and industrial unit, and at least one inquiry about its controlling stake in TerraForm Power (NASDAQ:TERP).
- “It’s a piecemeal approach,” says a solar analyst at Greentech Media. “Or you’re buying a dozen eggs knowing a few of them will be broken.”
- There is no formal sales process yet for SUNE’s stakes in TERP and sister company TerraForm Global (NASDAQ:GLBL) through Class B shares that give it control over the two yieldco units, according to the report.
Wed, Jun. 29, 2:09 PM
- TerraForm Power (TERP +10.9%) surges higher after Brookfield Asset Management (BAM +2.1%) discloses a 12.13% active stake; TerraForm Global (GLBL +2.9%) shares also are enjoying a lift.
- BAM's aggregate exposure, which consists of 11M-plus class A shares and more than 11.5M notional shares via swap agreements totals ~24.82% of TERP's outstanding class A shares, according to the filing.
- BAM also is making efforts to acquire shares owned by SunEdison (OTCPK:SUNEQ), citing the investment opportunity and its belief that the Issuer will require operating and financial sponsorship.
Thu, Jun. 2, 2:19 PM
- TerraForm Global (GLBL -4.1%) and TerraForm Power (TERP -0.2%) get notices of default from bondholders for failing to file their 2015 audited financial statements on time, according to SEC filings (I, II).
- Delivery of the notices on May 31 starts the clock ticking on a 90-day period that could leave the companies at the mercy of lenders.
- TERP's default warning notices involve $1.25B worth of bonds, while GLBL received a default notice from the trustee for the bondholders for $760M worth of senior notes.
- The two companies have previously said the delays are due in part to SunEdison (OTCPK:SUNEQ), which provides systems needed to complete the reports.
- The TerraForm companies are major creditors of SUNE, which filed for Chapter 11 bankruptcy in April.
Fri, May 20, 2:52 AM
- A scheduled hearing regarding SunEdison's (OTCPK:SUNEQ) $300M bankruptcy loan in the U.S. Bankruptcy Court for the Southern District of New York has been moved to today.
- Some of SunEdison's creditors and its yieldcos, TerraForm Global (NASDAQ:GLBL) and TerraForm Power (NASDAQ:TERP), had objected to the debtor-in-possession loan, which includes features that may help a group of lenders recoup their initial investment.
Wed, May 11, 5:35 PM
Tue, May 10, 9:43 AM
- Vivint Solar (VSLR -12%), abandoned in a buyout deal by SunEdison (OTCPK:SUNEQ), says it's going to take part in the bankruptcy case in order to maximize its claims against SunEdison.
- Vivint shares are at a 52-week low after yesterday's earnings miss. The company has sued SunEdison seeking damages, a lawsuit temporarily stayed by SunEdison's bankruptcy filing April 21.
- David Tepper and Appaloosa Management also sued over the Vivint deal to block SunEdison's TerraForm Power unit from buying some Vivint assets.
- Today in SunEdison's yieldcos: TerraForm Power (NASDAQ:TERP) down 1.1%; TerraForm Global (NASDAQ:GLBL) flat.
- Now read Vivint Solar's Market Position Is Deteriorating »
TerraForm Power, Inc. owns and operates contracted clean power generation assets. The company's objective is to acquire assets with contracted cash flows primarily from owning solar and wind generation assets serving utility, commercial and residential customers. It intends to acquire other... More
Industry: Diversified Utilities
Country: United States