SunEdison has mobilized $590 million funding to part-fund the acquisition of First Wind in the US in a deal valued at $2.4 billion.
SunEdison has raised about $190 million through the sale of 12.9 million shares in its Semiconductor firm and a further $400 million through credit commitments from financial institutions.
The company will use $590 million towards making cash payment as upfront consideration during the initial procedure of acquisition.
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In November last year, SunEdison entered into an agreement with TerraForm to acquire First Wind for $2.4 billion through a joint venture.
The acquisition is expected to close on the first quarter of 2015.
Once the deal is materialized, SunEdison will be the largest global renewable developer according to the company claims.
According to SunEdison, its upfront portion of the consideration is nearly $1 billion that includes the previously announced $340 million seller convertible note and the remainder in cash.
Last week, Terraform acquired 21 U.S. distributed generation (DG) solar power plants comprising 26 MW from SunEdison for $47 million and the portfolio has 21 power plants located in seven U.S states.
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In another development, SunEdison acquired new wind turbines that will help build 1.6 gigawatts (GW) of wind energy projects qualifying for U.S. federal production tax credit (PTC).
Upon completion, the projects will be sold to TerraForm, SunEdison’s partner in the First Wind deal.
Of the 1.6 GW First Wind projects, SunEdison will acquire a 531MW project pipeline, a 1.1GW backlog, and a 6.4GW wind development platform.
Sabeena Wahid
[email protected]