SunEdison, Goldman fund to create USD-1bn renewables "warehouse"
Solar park in India built by SunEdison. Author: American Center Mumbai. License: Creative Commons, Attribution-NoDerivs 2.0 Generic
US renewables major SunEdison Inc (NYSE:SUNE) and a fund managed by Goldman Sachs (NYSE:GS) will create a USD-1-billion (EUR 904m) warehouse investment vehicle.
SunEdison announced this on Monday, saying that the warehouse can be expanded by up to USD 1 billion. The purpose of the new entity, called the WSIP Warehouse, would be to finance construction costs and acquire operating assets. More specifically, the WSIP Warehouse will build and hold assets in advance of drop down to SunEdison’s yieldco vehicle TerraForm Power Inc (NASDAQ:TERP).
The renewables developer’s partner is West Street Infrastructure Partners III LP (WSIP), the infrastructure fund managed by Goldman Sachs, which will contribute some USD 300 million in equity to the new warehouse. A syndicate of banks, including Morgan Stanley, Bank of America and Deutsche Bank, will commit a total of USD 700 million of debt in the form of a USD-500-million, five-year term loan and a USD-200-million, four-year revolving credit line.
SunEdison already has two other such vehicles, namely the USD-1.5-billion First Reserve Warehouse and the USD-500-million TerraForm Private Warehouse. The company expects to complete the formation of the new one by the end of October. It mentioned it is considering the creation of other warehouse facilities, too.