SunEdison Seeks to Raise $750 Million, Mulls New Structure

(Bloomberg) — SunEdison Inc. is seeking to raise $750

million to buy assets as it explores other corporate structures

to manage an expanding empire of solar and wind farm

partnerships.

The renewable-energy developer is evaluating options

including whether to become a general partner that would control

its so-called yieldcos, Maryland Heights, Missouri-based

SunEdison said Monday in a statement.

SunEdison controls a publicly traded unit, TerraForm Power

Inc., that owns and operates power plants, and said Thursday

that it’s planning to create a second one. A portion of the

money it said it’s raising Monday will go to buy assets to seed

the second venture. As its corporate structure expands, the

company is now evaluating the best way to organize the various

units.

“The most efficient and commonly utilized structure by

sponsors of yield vehicles is the general partnership structure

in a master limited partnership,” SunEdison said in the

statement. The strategic review is expected to be finished by

the end of the year, and it’s possible nothing will change.

SunEdison can’t form an MLP because the Internal Revenue

Service doesn’t currently permit renewable energy assets to be

organized in that structure, according to Jacqueline Lilinshtein, an analyst with Bloomberg New Energy Finance.

Congress is considering legislation that would address this.

Yieldcos operate power plants with long-term contracts to

sell electricity. That creates a steady revenue stream that

funds payments to investors and the purchase of additional

assets, and helps lower financing costs.

SunEdison plans to sell $750 million in convertible debt,

in part to purchase assets for the new venture, which will be

called TerraForm Global Inc., and to create a warehouse facility

for future acquisitions, according to a separate statement. Half

the notes would be due in 2023 and half in 2025.

The company announced Friday that it’s seeking to raise as

much as $700 million in an initial public offering of TerraForm

Global, as well as deals to purchase 757 megawatts of wind,

solar and hydropower assets in developing nations.

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

Will Wade, Tina Davis

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