SunEdi­son, Gold­man agree to form $1 bil­lion Clean-Power Fund

The Pak Banker - - COMPANIES/BOSS -

YORK: SunEdi­son Inc. is get­ting $1 bil­lion in cash and loans to build and buy clean power plants. The world's big­gest re­new­able-energy devel­oper is form­ing an in­vest­ment ve­hi­cle with a Gold­man Sachs Group Inc.-man­aged fund, ac­cord­ing to a state­ment Mon­day. SunEdi­son shares surged af­ter the close of reg­u­lar trad­ing in New York.

The Gold­man-man­aged fund, West Street In­fra­struc­ture Part­ners III, will pro­vide $300 mil­lion in eq­uity and a group of banks that in­cludes Bank of Amer­ica Corp. and Deutsche Bank AG will sup­ply $700 mil­lion in debt. The deal will ac­cel­er­ate the devel­oper's global ex­pan­sion ef­fort, ac­cord­ing to SunEdi­son Chief Fi­nan­cial Of­fi­cer Brian Wuebbels. It adds to an ex­ist­ing $1.5 bil­lion ware­house lend­ing fund, and a sep­a­rate $500 mil­lion fund for Ter­raForm Power Inc., the SunEdi­son-con­trolled com­pany that buys and op­er­ates power plants. The new fund will help SunEdi­son meet its 2016 growth guid­ance and pro­vide "re­peat­able and scal­able fund­ing for the fu­ture," Wuebbels said in the state­ment.

The WSIP Ware­house fund is ex­pected to be formed by the end of Oc­to­ber. SunEdi­son can ex­pand it by another $1 bil­lion un­der cer­tain con­di­tions. The fund "gives the com­pany more flex­i­bil­ity with its liq­uid­ity and the cap­i­tal needed to de­velop the projects for their 2016 guid­ance," Jeff Os­borne, an an­a­lyst at Cowen & Co. in New York, said in an e-mailed re­sponse to ques­tions. Ter­raForm will have the right to pur­chase the power plants that are de­vel­oped through the new fund. The fund will help Gold­man Sachs "ex­pand our port­fo­lio of in­vest­ments in so­lar and wind projects," Ed­ward Palle­sen, head of the com­pany's in­fra­struc­ture in­vest­ment group, said in the state­ment.

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