SunEdison and Goldman Sachs partner to form $1bn green energy investment vehicle

17 August 2015 (Last Updated August 17th, 2015 18:30)

Solar energy firm SunEdison has announced the formation of a $1bn warehouse investment vehicle using funds managed by the Goldman Sachs Group and a syndicate of banks, in order to support a construction and operating asset facility for renewable energy.

Solar energy firm SunEdison has announced the formation of a $1bn warehouse investment vehicle using funds managed by the Goldman Sachs Group and a syndicate of banks, in order to support a construction and operating asset facility for renewable energy.

The Goldman Sachs-managed investment fund, West Street Infrastructure Partners III and affiliates, will offer $300m in equity for the investment vehicle, which will be called WSIP Warehouse.

"Our new warehouse supports SunEdison’s 2016 guidance for growth, reinforces the depth of demand for investor participation…and provides repeatable and scalable funding."

The remaining $700m will be provided as debt by a syndicate of banks, including Bank of America, Morgan Stanley Senior Funding, and Deutsche Bank. While $500m from this amount will be a five-year term loan, $200m will be offered as a four-year revolving credit facility.

SunEdison will be allowed to expand the facility to up to $2bn later on, following certain conditions.

SunEdison CFO 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 $1.5bn First Reserve Warehouse, and the $500m 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."

The firm’s unit, TerraForm Power, will have the exclusive right to purchase power projects developed through the new fund, SunEdison said.