TerraForm Power holds on to SunEdison staff, changes terms on notes

The changes in terms on notes also include a requirement that companies buying up TerraForm stock take over the notes.

August 31, 2016 Christian Roselund

Image: TerraForm Power

The bankruptcy of SunEdison and the carving up of its empire has not been without consequence for its two yieldcos, TerraForm Power and TerraForm Global, particularly given the strong financial and operational connections between SunEdison and the two companies.

One of the consequences of the fianancial chaos resulting from the collapse of SunEdison has been a substantial delay in the filing of quarterly results from both TerraForm Power and TerraForm Global.

Over the past two days both companies have announced agreements that will allow TerraForm Power and Global to keep key executives if they are laid off by SunEdison. This includes Rebecca Cranna, who servers as executive VP and Chief Financial Officer of TerraForm Power and Global, Sebastian Deschler, Senior VP, General Counsel and Secretary of TerraForm Power and Yanna Kravtsova, who fills the same roles at TerraForm Global.

Additionally, TerraForm Global has announced the departure of Ismael Guerrero Arias, president and head of originations.

TerraForm Power has also increased the interest on certain bonds due 2023 and 2025, after securing an agreement from bondholders that consents to the further delay of financial filings, including the company’s 2015 results, to December 6th.

The agreement includes a provision that if any party buys up more than 33% or less than 50% of the voting stock of TerraForm Power, that they must also buy up both series of notes at the price equal to 101% of the principal.

These moves come as rumors fly about potential acquisitions of TerraForm Power. Bloomberg says that GCL New Energy’s parent company is considering buying up TerraForm, and Reuters reports that D.E. Shaw is considering a bid for the company. Both of these publications cite anonymous sources.

This follows GCL-Poly announcing on Sunday that it had signed a contract to buy up SunEdison polysilicon and cell production assets.

Meanwhile, previous moves by TerraForm have ensured that Brookfield and hedge fund manager David Tepper’s Appaloosa cannot combine to block the sale of the company to other bidders.

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