Dive Brief:
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TerraForm Power, a yieldco set up by SunEdison, the world's largest renewables developer, is putting itself up for sale rather than being sold in parts, Bloomberg reports.
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The move to auction TerraForm’s 2,987 MW renewable portfolio follows an acquisition offer from Brookfield Asset Management and Appaloosa Management for SunEdison’s stake in TerraForm.
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Bloomberg, citing “people with knowledge of the matter,” said TerraForm plans to launch the auction in September and that it would be conducted separately from any wind or solar assets that bankrupt SunEdison plans to sell.
Dive Insight:
Another SunEdison yieldco, TerraForm Global, earlier this month said it plans to put itself on the block.
The yieldcos were set up to attract investors looking for steady returns and as funding vehicles for SunEdison. Both yieldcos have two classes of shares, with controlling interest residing in the B class shares, and both yieldcos are separate from SunEdison, which filed for bankruptcy court protection in April.
The renewables company reported a total debt of $11.7 billion by the end of September 2015, more than double the amount it reported last year, as it acquired projects and companies on six continents, prompting questions from investors whether it borrowed too much, too fast.
Brookfield and Appaloosa own about 22% of the A shares. SunEdison’s Class B stake in TerraForm Power gives it a roughly 91% of the firm’s voting rights.
Representatives for SunEdison, TerraForm and Brookfield declined to comment to Bloomberg, and an official at Appaloosa didn’t respond to inquiries seeking comment.