It's the final act in the dismantling of the once high-flying, self-proclaimed “renewable energy supermajor.”
In 2014, SunEdison jumped into deep YieldCo waters with TerraForm Power and TerraForm Global. The company made a series of large, questionable acquisitions in First Wind and Vivint, as well as a slew of lesser corporate additions. SunEdison lost almost $1 billion in the first three quarters of 2015. When SunEdison's stock was at its peak, the company raised debt rather than equity, and that debt load returned with a vengeance.
NRG is gaining a big chunk of SunEdison's portfolio and boosting its own utility-scale portfolio. Despite NRG's difference of opinion with fired CEO and renewables champion, David Crane — the company is not abandoning renewables. It continues to replenish projects for YieldCo partner NRG Yield.
According to a blog post, the acquired portfolio includes:
- Joint ownership in a 530-megawatt fully-built and contracted set of seven utility-scale solar projects in Utah
- Ownership of 154 megawatts of fully-contracted, partially-constructed solar projects in Texas
- Ownership of 1,100 megawatts of solar and wind assets across the U.S., including 111 megawatts of construction-ready assets in Hawaii
The contract with SunEdison provides for up to $183 million in payment, comprised of an upfront payment of $124 million and subsequent payment of $15 million after the power-purchase agreements in Hawaii are closed. NRG may pay another $44 million if certain project benchmarks are met.
Outside of SunEdison’s federal bankruptcy court process, NRG also acquired a 29-megawatt portfolio of in-construction and construction-ready distributed solar projects.
Here's an updated SunEdison timeline.
SunEdison's tale of woe timeline
June 2014: The launch of SunEdison's first YieldCo, TerraForm Power.
Nov. 2014: SunEdison and TerraForm acquire wind developer First Wind for $2.4 billion.
July 2015: TerraForm Global, a YieldCo focused on investment in Africa and Asia, launches.
July 2015: SunEdison's $2.2 billion plan to acquire residential installer Vivint in cash, stock and notes does not delight investors. The stock price collapses upon the announcement.
Sept. 2015: CEO Ahmad Chatila sends a memo notifying employees of a 15 percent workforce cut. GTM's Stephen Lacey reports: “Sources within the company expressed worry and surprise that the cuts didn't impact the architects of the Vivint acquisition.”
Dec. 2015: SunEdison revised the terms of its acquisition of Vivint.
- David Tepper, billionaire hedge-fund founder and 10-percent-owner of TerraForm, sues SunEdison in an attempt to block Vivint assets (and debt) from being moved to the YieldCo
- Steve Tesoriere, an activist investor and architect of SunEdison’s YieldCo strategy, resigns from the board. COO Francisco Perez Gundin and Paul Gaynor (former First Wind CEO) depart.
- SunEdison announced the pricing of $725 million of a second lien secured term loan intended to improve the company's liquidity position.
- SunEdison named Claire Gogel, formerly of David Einhorn's hedge fund Greenlight Capital, to its board of directors. Greenlight Capital has a 6.8 percent stake in SunEdison
- Vivint Solar shareholders approve SunEdison's $1.9 billion acquisition of the residential solar company.
- Hawaiian Electric cancels three SunEdison projects on the islands worth $350 million, with $42 million already spent. Almost 100 workers lose their jobs, according to PBN.
- SunEdison to sell its Japanese solar unit to Thai oil company Bangchak for $82 million, according to Fortune.
- UBS cut its price target for the company from $2.00 to $0.75 per share. Many other equity analysts downgrade the shares as well.
- SunEdison is selling its Malaysian silicon wafer factory and plans to close its Texas polysilicon factory
- SunEdison delays its 2015 and Q4 financial report as it resolves two internal investigations into the accuracy of its financial disclosures.
- Goldman Sachs, Barclays, Citigroup and UBS, the banks loaning SunEdison ~$2 billion for its Vivint acquisition, “have balked at providing [the] loans” according to the The Wall Street Journal. If the deal is not closed by March 18, either party could then walk away, reports WSJ.
- SunEdison and TerraForm Power announce a $28.5 million settlement and termination of the Latin America Power acquisition.
- SunEdison, entered Chapter 11 bankruptcy proceedings
- SunEdison CEO Ahmad Chatila resigned
- GCL-Poly, a Chinese firm that produces solar polysilicon and wafers, as well as develops solar farms, bought SunEdison's once billion-dollar silicon business for $150 million
- Competitive energy supplier NRG Energy closed on its acquisition of bankrupt SunEdison's solar and wind projects totaling 1,500 megawatts
Base chart: Google Finance