SunEdison is back—kinda. Once likely the largest renewable energy company in the US, the company's Icarian growth spurt, which saw it pioneering new financing models for renewable energy projects like YieldCos and attempting to gobble up other renewable energy companies like Vivint Solar and First Wind, led to its bankruptcy in April 2016. Now it's an echo of its former self and has now emerged as a private company.
The company went public in 2014 raising $94 million in its initial public offering to fund its growth. In 2014 it also launched its first YieldCo, TerraForm Power, which raised about $500 million in its IPO. TerraForm Power operated over 200 solar projects at the time. It’s other YieldCo TerraForm Global launched in 2015 and raised $675 million. That YieldCo had 42 renewable energy projects in Asia, Africa, and Latin America when it launched.
But the growth spree turned out to be too much for SunEdison and it filed for bankruptcy, ultimately selling off its YieldCos to Canada’s Brookfield Asset Management and 1.5 gigawatts of its solar and wind projects in the US to NRG Energy. Brookfield purchased 51 percent of TerraForm Power in October 2017 and completed a full acquisition of TerraForm Global in December 2017, giving the company a 3.5 gigawatt portfolio of solar and wind projects, according to GTM Research.
Now the company has restructured as smaller, privately held company and announced that it emerged from bankruptcy on Dec. 29, in the waning light of 2017. In all, the company sold over $2.3 billion in gross asset sales through the bankruptcy.
"We sincerely appreciate the support and cooperation of our financial stakeholders, advisors, creditors, and other parties involved in the company's Chapter 11 process, including our first and second lien lenders, the official committee of unsecured creditors, and the YieldCos,” said John Dubel, who was its CEO and chief restructuring officer. "We also want to thank the company's outgoing board of directors for their invaluable contributions and guidance relating to the company's restructuring.” Under the newly reorganized company Richard Katz will serve as its new Chairman and CEO.
Vivint Solar ultimately canceled the agreement to be purchased by SunEdison shortly before the latter filed for bankruptcy. But by that time it had acquired First Wind for $2.4 billion, which had 521 megawatts of operational solar and wind projects at the time it was purchased and a project pipeline of 8 gigawatts of new solar and wind projects. The company also had acquired energy storage company Solar Grid Storage and its TerraForm Power purchased large portfolios like Capital Dynamics’ 77.6 megawatt solar portfolio, as well as other purchases.
What this latest iteration of the company will turn into will likely take some time. It said it is focused on monetizing its remaining assets.Tweet