SunEdison has formed a $1bn warehouse investment vehicle with Goldman Sachs managed fund to acquire and build clean power plants.
The deal is expected to accelerate SunEdison’s global expansion effort.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The latest investment fund will expand the existing $1.5bn warehouse lending fund, and $500m TerraForm Private Warehouse fund.
Morgan Stanley, Bank of America and Deutsche Bank will lead the $700m debt which will be provided in form of a five-year term loan worth $500m, and the remaining $200m will be provided in a four-year revolving credit facility.
West Street Infrastructure Partners III, a Goldman-managed fund will provide $300m in equity to the investment vehicle.
SunEdison will have option to expand the facility to about $2bn, provided it meets certain conditions.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSunEdison chief financial officer Brian Wuebbels said: "SunEdison’s new $1bn warehouse provides incremental capacity for SunEdison to construct and hold assets in advance of drop down to TerraForm Power.
"The WSIP Warehouse expands our capacity beyond our existing $1.5 bn First Reserve Warehouse and the $500 m dollar 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."
TerraForm Power is likely to have an exclusive call right over the warehoused assets.
