West Street Infrastructure Partners III (WSIP), and affiliates, have joined forces with SunEdison to create the $1 billion WSIP Warehouse, to fund construction and acquire operating assets in the renewable energy field. Yieldco, TerraForm Power Inc. has exclusive call of rights. The transaction details are expected to be finalized this October 31.
WSIP, a Goldman Sachs-managed investment fund has committed $300 million worth of equity, while Morgan Stanley, Bank of America and Deutsche Bank will cover the remaining $700 million, comprised of a $500 million five year loan and a $200 million four-year revolving credit facility. Subject to certain, unidentified, conditions being met, SunEdison has the option to expand the WSIP Warehouse to $2 billion.
SunEdison already has two existing warehouse facilities worth $2 billion in the form of the $1.5 billion First Reserve Warehouse and the $500 million TerraForm Private Warehouse. "Our new warehouse supports SunEdison's 2016 guidance for growth, reinforces the depth of demand for investor participation in SunEdison's warehouse platform and provides repeatable and scalable funding for the future," commented Brian Wuebbels, SunEdison CFO.
The company has not ruled out expanding its existing warehouse facilities, or adding further ones in the coming future, as it continues to explore financing alternatives.
In a separate statement released, SunEdison said it would offer 500,000 shares of its Perpetual Convertible Preferred Stock worth $500 million. The proceeds are expected to go towards "general corporate purposes, including funding working capital and growth initiatives."
Helping to cement it as the worlds biggest renewable energy development company, SunEdison has made a number of significant announcements over the past year, including the establishment of TerraForm Power and TerraForm Global; the acquisition of three wind companies, including giant, First Wind, and residential solar rooftop installer, Vivint Solar; and a number of wind and solar portfolios across the globe.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.