TerraForm Global Q4 results one more step towards Brookfield acquisition

Share

For most publicly listed companies, the filing of quarterly and full year results may be a lot of work, but it isn’t a major milestone. But the TerraForm companies – TerraForm Power and TerraForm Global – aren’t most companies. The two yieldcos have struggled to put their books in order following the collapse SunEdison, while separating their finances and operations from their bankrupt sponsor.

Today TerraForm Global (NASDAQ: GLBL) took one more step towards compliance with NASDAQ listing requirements and also its pending acquisition by Canada’s Brookfield Asset Management, by filing its fourth quarter and full year results for 2016. These results showed a net loss of $60 million during the quarter, against $55 million in revenues.

This is worse than the previous quarter’s $18 million loss, but nothing compared to the way that the company has hemorrhaging money a year ago, when it reported a $254 million loss in one quarter. And despite the Q4 loss TerraForm Global still managed $18 million in cash available for distribution (CAFD) during the quarter, and held an unrestricted cash balance of $681 million at the end of it all.

More significantly, the filing of these results helps Global to regain NASDAQ compliance and make one more step towards an acquisition by Brookfield Asset Management, under a deal signed in March. Last week an even larger milestone was reached, with bankruptcy court approval of settlements between SunEdison and both TerraForm Power and Global. Additionally, Global has settled a lawsuit with Renova.

“Our team remains focused on meeting the outstanding closing conditions, which include the settlement of certain remaining litigation, receipt of certain regulatory approvals and shareholder approval of the transaction,” stated TerraForm Global Chair and Interim CEO Peter Blackmore. “We continue to expect the transaction to close in the second half of 2017.”

The filing of full year results also puts Global one step ahead of its sister company, TerraForm Power. Power is delinquent on both its first quarter 2017 and full year 2016 results, and in May received a letter by NASDAQ demanding that both be filed by the end of June. The company must additionally hold an annual meeting.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Popular content

Ten reasons why small-scale, non-utility solar is important
05 December 2024 Behind-the-meter solar for homes, businesses, and communities comes with numerous benefits, said a paper from Stanford engineering professor Mark Jaco...