SunEd yieldco called 'TerraForm'

The Alamosa PV plant in Colorado, developed by SunEdison, which is planning a yieldco listing
SunEdison on Thursday provided investors with another peek into its planned yieldco, and revealed the new company’s name: TerraForm Power.

The stock will trade on the Nasdaq stock exchange under the ticker symbol TERP.

TerraForm will begin life with an initial portfolio of 524MW – which includes a 135MW portfolio of distributed PV (nearly all of it in the US), and 389MW of utility-scale capacity, spread across the US, Chile, the UK and Canada.

TerraForm will have access to 900MW of “Call Right” projects owned by SunEdison, and it will have first crack at buying all of SunEdison’s future solar projects in the four countries represented in its initial portfolio.

SunEdison currently has a 3.4GW pipeline of development-stage solar projects, and about 500MW under construction.

It emerged this week that SunEdison hopes to buy AES Corp.’s half-stake in the developer Silver Ridge Power, and acquire a majority stake in the recently finished 206MW Mount Signal PV array in California to feed into TerraForm.

But that project, apparently, will not be part of TerraForm’s initial portfolio.

TerraForm has elected to list as an “emerging growth company” as defined by the Jumpstart Our Business Startups Act of 2012 – meaning that it does not have to provide as much information to the markets as larger companies would in advance of its IPO.

It is still not clear exactly how much money SunEdison hopes to raise, or the price at which TerraForm shares will be listed. But SunEdison, which will own a controlling stake in TerraForm, has previously suggested the new yieldco could be valued at $800m-$1bn.

After seeing its own share price rise more than 170% in the past year – with a number of high-profile US investors having recently thrown their weight behind the company – SunEdison’s market valuation currently stands at $5.6bn.

Shares in SunEdison Semiconductor, the company spun off of SunEdison, are largely flat since they began trading last week on the Nasdaq.

NextEra, the largest operator of wind and solar capacity in the US, is currently laying the groundwork for its its own yieldco IPO.

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