SunEdison's yieldcos exploring strategic options, including sale (updated)

AlTi Global

19/09/2016 13:56

(Adds details) 
    Sept 19 (Reuters) - TerraForm Global Inc  GLBL.O  and 
TerraForm Power Inc  TERP.O , the "yieldcos" of bankrupt solar 
company SunEdison Inc, said on Monday they were exploring 
strategic alternatives, including a sale of their entire 
business. 
    The yieldcos were not part of SunEdison's bankruptcy in 
April and said at the tine that they had sufficient liquidity to 
operate and that their assets were not available to satisfy the 
claims of SunEdison creditors.  urn:newsml:reuters.com:*:nL2N17B0J1 
    Yieldcos are publicly traded subsidiaries that hold 
renewable energy assets, including assets bought from their 
parents or sponsors. They are backed by long-term power purchase 
contracts with utilities, allowing them to pay regular 
dividends. 
    The two companies also said on Monday they are considering 
replacing SunEdison with a new sponsor, by negotiating new 
sponsorship arrangements or by assuming SunEdison's existing 
sponsorship agreements. urn:newsml:reuters.com:*:nGNXNDCYNa urn:newsml:reuters.com:*:nGNXNDCYMa 
    Some of the strategic alternatives for TerraForm Global and 
TerraForm Power may require stockholder approval, while some may 
require approval of the U.S. Bankruptcy Court for the Southern 
District of New York, the companies said. 
    TerraForm Global has engaged Centerview Partners, Greentech 
Capital Advisors and AlixPartners as financial advisers. 
    Centerview Partners, Morgan Stanley and AlixPartners are 
TerraForm Power's financial advisers. 
    Both the companies have engaged Sullivan & Cromwell LLP as 
their legal counsel. 
 
 (Reporting by Arathy S Nair in Bengaluru; Editing by Savio 
D'Souza and Maju Samuel) 
 ((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: TERRAFORM ALTERNATIVES/