TerraForm Power Inc., a yieldco subsidiary of SunEdison Inc., has priced an underwritten initial public offering (IPO) of 20,065,000 shares of its Class A common stock at a price to the public of $25.00 per share. The shares will be traded on the NASDAQ Global Select Market.
In connection with this offering, TerraForm Power has granted the underwriters a 30-day option to purchase up to an additional 3,009,750 shares of Class A common stock at the IPO price. TerraForm Power will also receive gross proceeds of $65 million from the sale of shares of Class A common stock in connection with two concurrent private placement transactions at a price per share equal to the IPO price.
TerraForm Power intends to use $371.2 million of the net proceeds of this offering and the gross proceeds of $65.0 million from the private placement transactions to acquire newly issued Class A units of TerraForm Power LLC.Â
TerraForm Power LLC will use such proceeds, together with the proceeds from a new term loan facility, to repay outstanding debt and other expenses.