SunEdison prepares to sell TerraForm Global

The bankrupt renewable energy developer appears to be fishing for bidders for TerraForm Global, as many investors seem to prefer buying pieces instead of the whole SunEdison empire.

July 20, 2016 Christian Roselund

The Amanecer solar project was the largest in Latin America when built at 101 MW.

SunEdison has requested that TerraForm Global take steps to facilitate its own sale, as revealed in a presentation by the “yieldco” to investors. TerraForm Global is the company which holds many of SunEdison’s wind and solar projects outside the United States.

In this presentation, TerraForm Global notes that it is in “active discussions” with SunEdison for a “jointly-supported sales process”, but the company has made no decision at present to support any bidder, structure or transaction.

The news that SunEdison is looking for a buyer for TerraForm Global comes less than a month after CEO Ahmad Chatila was replaced by John S. Dubel, who was hired from outside SunEdison to restructure the company.

It also comes as Bloomberg reports that SunEdison has not found a new buyer for the entire business, three months after filing for chapter 11 bankruptcy protection. Citing two anonymous sources, Bloomberg says that the company has received over 100 indications of interest for specific assets, including a controlling stake in its initial yieldco, TerraForm Power.

TerraForm Global holds a fleet of 917 MW of wind and solar assets, including 307 MW of wind in Brazil and 299 MW of wind and solar in India, with its other assets spread across the developing world in Asia, Africa and South America.

The company has not filed results since its last form 10-Q in November 2015, however a statement of preliminary Q1 results shows revenue of $47-52 million and a net loss of $0-8 million. However, despite $41 million in acquisition fees, $76 million in bond repurchase and debt service and $41 million in SunEdison reimbursement for senior notes, the company closed the quarter with $787 million in unrestricted cash.

However, the company also notes that it is “highly dependent” on SunEdison, and that the “SunEdison bankruptcy poses substantial risks to our business, operations and financial condition”.

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