In a major coming together of solar and wind development, SunEdison has announced that it has taken a major step towards its acquisition of First Wind.
The company has sold 12.9 million SunEdison Semiconductor shares, in a secondary offering, raising $190 million. The remaining $400 million in cash will be provided to SunEdison through existing finance partners. The loan was issued against SunEdisons shares in its yieldco subsidiary TerraForm Power.
The funds will form the cash component of the First Wind transaction.
In November last year, SunEdison announced that it would pay the equivalent of $2.4 billion for First Wind, in a move that it says makes it the worlds largest renewable energy developer. SunEdison plans to install 2.1 GW to 2.3 GW of renewable projects in 2015.
"Our ability to secure this funding, while preserving the upside in value from our ownership in TerraForm Power, speaks to the strength of the growth platform we are creating," said SunEdison CFO Brian Wuebbels in a statement announcing the fund raising.
SunEdison will comprise the remaining $340 million of the upfront component of the First Solar acquisition through a seller convertible note. The total upfront amount SunEdison will pay for First Wind is approximately $1 billion.
SunEdison says it expects to complete the transaction within Q1 2015.