First Solar-SunPower yieldco prices IPO at top of range

Author: bfishadow. License: Creative Commons, Attribution 2.0 Generic

June 19 (SeeNews) - The joint yieldco of US solar majors First Solar Inc (NASDAQ:FSLR) and SunPower (NASDAQ:SPWR) today priced its initial public offering (IPO) at the upper end of the previously announced range of USD 19.00 (EUR 16.78) to USD 21.00 apiece.

Thus, 8point3 Energy Partners LP, as the yieldco vehicle is called, will raise USD 420 million by selling 20 million Class A shares in its debut on the Nasdaq Global Select Market. Since the company has granted an option to the underwriters that allows them to buy up to 3 million more shares at the same price, the total gross proceeds could even reach USD 483 million.

8point3’s shares will begin trading today under the symbol “CAFD”.

The company was created by First Solar and SunPower to own and operate a portfolio of selected solar parks. A previous filing with the US Securities and Exchange Commission (SEC) shows that the firm will start with a 432-MW portfolio of solar power projects. The yieldco will then seek to acquire further solar assets primarily from its sponsors. It says it will have a right of first offer (ROFO) on interests in 1,131 MW of projects developed by them.

8point3 will use all of the IPO net proceeds to buy the common units of 8point3 Operating Company LLC, which holds 8point3 Energy Partners' project assets. In turn, 8point3 Operating Company plans to use the sale proceeds to make a cash distribution to each of First Solar and SunPower.

(USD 1.0 = EUR 0.883)

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