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TerraForm Global Terminates Acquisition Of GME, Central America's Biggest Renewable Energy Company

|Includes: GLBL, SunEdison, Inc. (SUNEQ)

In June 15, 2015, SunEdison (SUNE) announced the plannedacquisition of Globeleq Mesoamerica Energy (Wind) Limited GME. GME is Central America's leading renewable energy company.

According to SunEdison CEO Ahmad Chatila:

"The acquisition of GME strengthens SunEdison's leadership position in the global wind energy market and significantly expands our presence in Central America, a region that offers growth opportunities for our emerging markets development platform. With this acquisition we not only gain an experienced and talented management team with a proven track record in the region, but also position ourselves to accelerate our performance and deliver attractive returns to our shareholders."

The planned acquisition involved four wind power plants and a solar power plant in Honduras, Costa Rica and Nicaragua representing an aggregate capacity of 326.0 MW (the "GME Projects"), as well as GME's wind and solar development platform.

The planned acquisition was continued by TerraForm Global Operating, LLC ("Global Operating LLC"), a subsidiary of TerraForm Global (NASDAQ:GLBL).

Under the Agreement, in the event that the transaction did not close by March 12, 2016, either Global Operating LLC or the sellers could terminate the transaction. As a result, on March 14, 2016, Global Operating LLC terminated the Agreement.

The acquisition compromised of aggregate consideration payment of $337.9 million in cash and 701,754 shares of TerraForm Global Class A common stock, plus interest of 15% per annum on the purchase price accruing from October 1, 2015.

According to TerraForm Global, "the funds that would otherwise have been used to acquire the GME Projects will be available to the Company for general corporate purposes and to be redeployed to execute our strategy."

Disclosure: I am/we are long GLBL, SUNE.