First Solar and SunPower’s 8point3 Energy IPO Nets $420 Million

(Bloomberg) — 8point3 Energy Partners LP, the renewable
energy partnership formed by First Solar Inc. and SunPower
Corp., raised $420 million in a Nasdaq initial public offering.

8point3 sold 20 million shares at $21 each, the high end of
its projected pricing range, and may sell an additional 3
million shares to the deal’s underwriters within 30 days,
according to a statement Friday. The company, which will trade
under the symbol CAFD, said June 10 it was seeking to raise as
much as $483 million.

Goldman Sachs Group Inc. and Citigroup Inc. led the
offering, joined by Deutsche Bank AG, JPMorgan Chase & Co. and
Credit Agricole SA. Proceeds from the IPO will be used for cash
distributions to First Solar and SunPower and for general
corporate purposes, including future acquisitions, according to
the statement.

First Solar and SunPower are the largest U.S. solar
manufacturers and the first to jointly create a yieldco, a
structure that’s growing in popularity among clean-energy
investors. Yieldcos typically buy and hold projects, freeing up
development capital and returning dividends tied to long-term
contracts to sell electricity.

To contact the reporter on this story:
Justin Doom in New York at
jdoom1@bloomberg.net

To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Robin Saponar, Jim Efstathiou Jr.

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