UPDATE - SunEdison sets up USD-525m "warehouse" for operating assets

US renewables major SunEdison Inc (NYSE:SUNE) said on Monday it has established a USD-525-million (EUR 470.6m) “warehouse” facility to hold the stakes in certain wind farms it just acquired from Atlantic Power Corp (NYSE:AT).

Earlier in the day, Atlantic Power announced it has completed the sale of 521 MW of operating wind power capacity in the US states of Idaho and Oklahoma to SunEdison for USD 347 million. The buyer said in a separate statement it has formed TerraForm Private Warehouse to hold the acquired assets for a maximum period of seven years.

The warehouse facility amounts to USD 525 million in aggregate size, with equity provided by infrastructure investors Macquarie Capital, John Hancock and SunEdison itself. Morgan Stanley, Citigroup and Goldman Sachs led the structuring of the facility and also provided a seven-year loan for it.

SunEdison’s yieldco unit TerraForm Power Inc (NASDAQ:TERP) has the exclusive call right over the warehoused operating assets.

"This warehouse is integral to securing the future growth of the SunEdison-TerraForm platform, and provides repeatable and scalable funding,” said Brian Wuebbels, SunEdison’s CFO. He added that the company plans to set up even more such warehouse vehicles to address future acquisition opportunities.

(USD 1.0 = EUR 0.896)

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