and Appaloosa Management LPare partnering on an offer to buy out SunEdisonInc.'s shares in TerraFormPower Inc., a yieldco sponsored by the bankrupt renewable energydeveloper, according to amended Schedule 13D filings July 22.
BrookfieldAsset Management in June madeknown its interest in acquiring SunEdison's stake in the projectholding company. SunEdison, which filed for Chapter 11 protection in the U.S.Bankruptcy Court for the Southern District of New York in April, owns 35% ofthe economic interest and 84% of the voting interest in TerraForm Power.Brookfield Asset Management and Appaloosa Management combined own 21.67% ofTerraForm Power's class A common shares.
SunEdison'sclass B shares in TerraForm Power and its other yieldco, , are believed toaccount for a vast majority of the developer's assets, which were recentlyvalued at up to $1.5 billion. A July 20 court filing said SunEdison has totalliabilities of $4.56 billion.
BrookfieldAsset Management and Appaloosa Management said they have not signed adefinitive agreement.
CreditSightsanalysts Greg Jones and Andy DeVries in a July 18 note said it was likelyBrookfield Asset Management would buy TerraForm Power in order to combine itwith its own yieldco, BrookfieldRenewable Partners LP. At the end of the third quarter of 2015, thelatest period for which financial information is available, TerraForm Power'sfleet of renewable energy projects totaled about 1,918 MW.
In aJuly 20 financial statement, SunEdison only included revenue from third-partysales because pre-bankruptcy accounting that covered intercompany transactions,including with TerraForm yieldcos, "was not always accurate," thecompany said.
Sharesin TerraForm Power closed at $12.50 on July 22. The company has a market valueof about $1 billion, according to S&P Global Market Intelligence.