SunEdison secures $590m funding for First Wind acquisition

18 January 2015 (Last Updated January 18th, 2015 18:30)

Solar power producer SunEdison has raised $590m to fund the acquisition of Boston-based renewable energy firm First Wind.

Solar power producer SunEdison has raised $590m to fund the acquisition of Boston-based renewable energy firm First Wind.

The company has raised $190m by selling its 12.9 million shares in SunEdison Semiconductor.

Another $400m was secured by the company through credit commitments with multiple financial institutions.

The entire fund will be used to meet upfront cash payments to be made for the First Wind acquisition.

SunEdison and TerraForm Power signed the $2.4bn deal for First Wind in November 2014, under which the former’s share of upfront consideration is around $1bn.

"These funds are a major step forward in SunEdison’s acquisition of First Wind."

The transaction, however, awaits regulatory approval and is likely to be concluded by the first quarter of 2015.

SunEdison chief financial officer Brian Wuebbels said: "These funds are a major step forward in our acquisition of First Wind.

"Our ability to secure this funding, while preserving the upside in value from our ownership in TerraForm Power, speaks to the strength of the growth platform we are creating."

First Wind has a combined power generation capacity of almost 1.3GW and has projects spread across the north-east, the west and Hawaii.

SunEdison will acquire a further 1.6GW of pipeline and backlog projects, which have been added to TerraForm Power’s call right project list.

According to the deal, the firms have the opportunity to explore an additional 6.4GW of development.

TerraForm will be adding 521MW of assets from First Wind to its portfolio, and is likely to drop down 1.6GW of projects later in 2016 and 2017.