TerraForm Power Up Nearly 30% At Intraday Peak

TerraForm Power Inc (NASDAQ: TERP) stock soared in mid-morning trading today by 29.41 percent to $11.21 following its announcement to lower the cost of buying Vivint Solar Inc (NYSE: VSLR) rooftop solar portfolio to $799 million from $922 million. Vivint Solar's stock is up 14.90% to $9.64 in mid-morning trading.

TerraForm Power's shares rose 16.3 percent to $10.16.

The Bethesda-based clean energy company, would purchase Vivint's rooftop solar portfolio for $922 million in cash after the acquisition has completed. The deal is expected to close in 2016 of the first quarter.

Earlier this year, TerraForm announced a planned merger of Vivint Solar with a subsidiary of SunEdison, Inc (NYSE: SUNE). SunEdison has already canceled one of its projects based in Brazil, slashing $250 million in near-term costs and about $4 billion in long-term costs to its other sponsored yieldco, TerraForm. TerraForm said that it is "actively evaluating selling some or all of this initial portfolio to a third party.

According to the Wall Street Journal, SunEdison and TerraForm have cut the cash portion of the deal by about $2 a share and cut $0.75 per share off the stock part of the deal. The company's deal is in relation to the number of installed megawatts (MW).

David Tepper has since further raised his stake in TerraForm Power to 9.5 percent from 9.25 percent. Tepper's Appaloosa Management has bought an additional 200,000 shares and now has a total of 7.6 million TerraForm Power shares, according to a Tuesday filing with the US Securities and Exchange Commission (SEC).

SunEdison's stock traded up nearly 17 percent in the noon hour, at $4.02 in a 52-week range of $2.55 to $33.45.

Vivint's stock added nearly 15 percent to trade at $9.64, in a 52-week range of $6.59 to $16.00.