Market Overview

Sunedison, TerraForm Power To Pay $2.4 Billion For First Wind


Sunedison Inc (NYSE: SUNE) and its majority held TerraForm Power Inc (NASDAQ: TERP) agreed to acquire First Wind for $2.4 billion, including $1.9 billion in an upfront payment and a $510 million earn-out.

In Monday's extended session, Sunedison gained more than 7 percent to $17.85 per share.

Sunedison will pay $1.5 billion, including $1 billion in an upfront payment for the privately held wind developer First Wind. As part of its upfront payment Sunedison will issue a $340 million seller note.

TerraForm Power, spun out from Sunedison in June as a so-called yieldco, will acquire First Wind's operating portfolio for $862 million. Sunedison retains a controlling stake in TerraForm.

TerraForm Power and Sunedison have secured financing for the deal and to refinance TerraForm Power's existing debt.

TerraForm Power raised its 2015 estimated dividend to $1.30 per share, up 44 percent from its current $0.90 per share.

Sunedison boosted its estimate of 2015 project installations 29 percent to between 2.1 and 2.3 gigawatts, from 1.6 to 1.8 gigawatts.

Sunedison said its shareholders will benefit from increased cash flow, asset management revenues and dividend payments from TerraForm Power.

The deal also will increase the value of Sunedison's yieldco platform, Sunedison said.

Posted-In: First WindM&A News After-Hours Center


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