Brookfield Asset proposes to take 50-60 pct stake in TerraForm Power (updated)

AlTi Global

18/11/2016 15:09

(Adds details) 
    Nov 18 (Reuters) - Brookfield Asset Management Inc  BAMa.TO  
proposed on Friday to take a 50-60 percent stake in bankrupt 
solar company SunEdison Inc  SUNEQ.PK  unit TerraForm Power Inc 
 TERP.O , a week after it expressed interest in buying the 
"yieldco".     
    The cash offer of $13 for class A and class B shares of 
TerraForm Power is nearly in line with the class A stock's 
Thursday close of $13.01. (http://bit.ly/2g3NTiW) 
    The company's shares have risen 48.7 percent since 
Brookfield took a stake in the company on June 29, when it 
expressed interest in buying SunEdison's stake in TerraForm. 
    Yieldcos are publicly traded units that hold renewable 
energy assets, including those bought from the parent company. 
    The asset manager also said it was prepared to make an offer 
for SunEdison's other unit TerraForm Global Inc  GLBL.O .     
    Brookfield said last week it had met with TerraForm Power 
and TerraForm Global to discuss options for a deal. (http://bit.ly/2fB6Pp3) 
    One option included Brookfield replacing SunEdison as the 
sponsor of the yieldcos, keeping them as listed entities and 
purchasing their class A and class B shares. 
    Brookfield had said it could alternatively purchase the two 
yieldcos for cash. 
    Canada's largest alternative-asset manager's latest offer 
comes after the yieldcos said on Tuesday they had requested 
bondholders to waive financial statement reporting 
requirements.(http://bit.ly/2g3MdGt) 
    If the bondholders agree to the waiver the yieldcos could 
incur additional costs and covenant restrictions, limiting their 
ability to raise capital. On the other hand if the reporting 
requirements are not waived, the yieldcos face a potential 
default on bonds necessitating bankruptcy protection. 
    Brookfield said on Friday it was prepared to act as an 
interim sponsor of the yieldcos, starting immediately, for a 
period of up to six months. 
 
 (Reporting by Arathy S Nair in Bengaluru; Editing by Shounak 
Dasgupta) 
 ((arathys.nair@thomsonreuters.com;  within U.S. +1 646 223 
8780, outside U.S. +91 80 6749 3863; Reuters Messaging: 
arathys.nair.thomsonreuters.com@reuters.net)) 
 
Keywords: BROOKFIELD ASSET TERRAFORM POWER/