SunEdison Inc., the worst-performing clean-energy company, bought a minority stake in a portfolio of Dominion Resources Inc. solar power assets and then immediately sold the bundle to a partnership it formed last year with JPMorgan Chase & Co., its second such deal in a month.
SunEdison paid $117 million for a one-third stake in the 231 MW solar portfolio, and sold it to Terra Nova Renewable Partners for the same price, the Maryland Heights, Mo.-based developer said in a statement on Jan. 19.
SunEdison expanded aggressively last year, piling up almost $11.7 billion in debt to become the biggest clean-energy developer. That prompted investors to question how it would fund the wind and solar farms it’s planning around the world. After its shares tumbled 83 percent in the second half, the company has been seeking to sell projects and reduce debt.
Terra Nova and SunEdison announced a similar deal in December, for a one-third stake in another Dominion portfolio, with 336 MW of solar assets. SunEdison retains an option to buy back the projects involved in both transactions within five years. In that case, the call rights to the power plants may be assigned to SunEdison’s TerraForm Power Inc. yieldco unit.
Terra Nova, the partnership formed in September between SunEdison and institutional investors advised by J.P.Morgan Chase, has an option to buy Dominion’s 67 percent interest in the solar farms if certain undisclosed events occur.
The 567 MW of assets in the two deals consist of 24 projects in Indiana, Georgia, Connecticut, California, Tennessee and Utah that have long-term deals to sell the power under contracts with a weighted remaining term of 19.8 years.
SunEdison has lost 86 percent of its market value in the past year, the worst on the WilderHill New Energy Global Innovation index of 104 companies.
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