SunEdison forms $1 billion investment vehicle with Goldman Sachs


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 world’s 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.