Clean energy companies First Solar and SunPower have announced launch of an initial public offering (IPO) of their partnership yieldco 8point3 Energy Partners.
The limited partnership yieldco is to own and operate a portfolio of selected solar energy generation assets.
The IPO is for Class A shares representing limited partner interests in 8point3 Energy Partners, according to reports.
8point3 is offering 20 million shares to the public and has included a 30-day option for underwriters to purchase up to an additional 3 million shares from 8point3 at the IPO price, less the underwriting discount.
The yieldco is selling all the shares in the offering, according to a regulatory filing on Wednesday. The company will have interests in 432 megawatts of solar energy projects after the offering.
The IPO price is currently expected to be between $19.00 and $21.00 per share. The proceeds from the IPO is to be used to purchase the common units of 8point3 Operating Company, the entity that holds the project assets of 8point3 Energy Partners.
For 8point3 Operating Company, the proceeds from the sale of its common units will facilitate cash distribution to First Solar and SunPower and to meet its general corporate purposes, including the funding of future acquisition opportunities.
Goldman Sachs and Citigroup Global Markets are lead book-running managers for the IPO. Deutsche Bank Securities, JP Morgan Securities and Credit Agricole Securities (USA) are acting as joint book-running managers for the stock offering.
The companies have stated that the proposed offering will be made only by means of a prospectus.
Ajith Kumar S
editor@greentechlead.com