Expanding into New Horizons - Report on SunEdison

Aug 10, 2015, 09:40 ET from www.aciassociation.com

NEW YORK, August 10, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on SunEdison, Inc. (NYSE: SUNE). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=SUNE

Highlights from our SUNE Report include:

SunEdison to Acquire Vivint Solar - On July 20, 2015, SunEdison, Inc. and TerraForm Power, Inc. announced that SunEdison and Vivint Solar have signed a definitive merger agreement pursuant to which SunEdison will acquire Vivint Solar for approximately $2.2 billion. SunEdison noted that in connection with this proposed acquisition, it has entered into a definitive purchase agreement with a subsidiary of TerraForm Power which, concurrently with the completion of SunEdison's acquisition of Vivint Solar, will acquire Vivint Solar's rooftop solar portfolio, consisting of 523 megawatts (MW) which are expected to be installed by end of 2015, for $922 million in cash.  

  • Terms of the Transaction- As per the merger agreement, Vivint Solar stockholders will receive $16.5 per share which would comprise of $9.89 per share in cash, $3.31 in SunEdison stock and $3.30 per share in the form of SunEdison convertible notes. The merger is subject to approval of the stockholders of Vivint Solar. The release added that 313 Acquisition LLC, a major shareholder, which owns approximately 77% of the outstanding Vivint Solar shares, has entered into a voting agreement with SunEdison pursuant to which 313 Acquisition LLC has agreed, among other things, to vote in favor of the adoption of the merger agreement, subject to certain termination events, including, among others, termination of the merger agreement. SunEdison expects the transaction to close in the fourth quarter of 2015.
  • Tying up the Finances - SunEdison plans to fund the cash portion of the merger consideration primarily from the proceeds of a new $500 million secured debt facility and the completion of the $922 million sale of assets to TerraForm Power. As a means of support for the merger transaction, SunEdison has entered into a commitment letter with Goldman Sachs Bank USA for a $500 million secured term loan facility.
  • Senior Management's View and Guidance - Ahmad Chatila, the CEO of SunEdison and Chairman of TerraForm Power said that SunEdison's acquisition of Vivint Solar was a logical next step in the transformation of the Company's platform after the successful execution of its First Wind acquisition in January 2015. Furthermore, in conjugation with the merger agreement, SunEdison initiated its 2016 annual guidance and expects to generate 4,200 MW to 4,500 MW, a 50% increase from its prior outlook of 2,800 MW to 3,000 MW.

To find out how this influences our rating on SunEdison, Inc. read the full report in its entirety here: http://www.aciassociation.com/?c=SUNE

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