This will be SunEdison’s second spinout of renewable assets. TerraForm Power, Inc. (TERP: NYSE) was spun out of SunEdison a year ago, gaining 48% from its IPO price of 25%. Even at its present elevated price, the stock offers a dividend yield of 3.3%. The success of SunEdison’s first ‘yieldco’ is likely to influence the pricing and trading of the international properties now up for grabs if the SEC can be appeased.
SunEdison has been the premier acquirer of renewable energy projects. Its reputation precedes it, opening doors and priming negotiations. A central point of the case for Terraform Global is the existence of over 600 gigawatts of power generating capacity that the company apparently considers fair game for adding to the portfolio. Seven acquisitions are already in the pipeline, representing 921.7 megawatts of generating capacity.