SunEdison’s TerraForm eyes USD 577m from Nasdaq IPO
Jul 18, 2014 - US company SunEdison's (NYSE:SUNE) clean energy unit TerraForm Power on Thursday priced its initial public offering (IPO) on the Nasdaq at USD 25 (EUR 18.5) per share, expecting to raise some USD 576.9 million in total.
SunEdison’s recently spun off yieldco will have an initial portfolio that will comprise solar projects in the US, Canada, the UK and Chile with 807.7 MW of total nameplate capacity, it said in a filing with the Securities and Exchange Commission (SEC). All of the schemes have long-term power purchase agreements (PPAs) with "creditworthy" counterparties.
Under the IPO, TerraForm plans to sell 20.07 million of its class A common stock shares. Underwriters of the deal will have 30 days to purchase an additional 3 million shares at the same price to cover over-allotments. As much as USD 371.2 million of the net proceeds and some USD 65 million gross from two private placements will be allocated to buy newly-issued Class A units from Terra LLC, repay debt, pay certain fees and expenses. About 86 million of the funds will go for the acquisition of projects included in TerraForm Power's initial portfolio.
Goldman, Sachs & Co, Barclays Plc (LON:BARC) and Citigroup Inc (NYSE:C), JP Morgan Securities LLC and Macquarie Capital USA will act as joint book-running managers of the IPO.
TerraForm’s stock will start trading on the Nasdaq Global Select Market on July 18 under the symbol “TERP”.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.