SunEdison, First Reserve Form JV To Fund Solar Development


son, the solar energy development division of MEMC Electronic Materials Inc., has signed an agreement with First Reserve Corp. to establish a joint venture that could provide for the acquisition of up to $1.5 billion in current and future SunEdison solar photovoltaic energy projects. The initial equity commitment for the joint venture of $167 million will be contributed by First Reserve and SunEdison. When combined with contemplated additional debt financing, these equity commitments are expected to fund the acquisition of solar assets developed by SunEdison with an enterprise value of $825 million, according to the companies. The agreement contemplates that depending on market conditions, development opportunities and existing capital of the joint venture, First Reserve may raise an additional $150 million of equity which, when coupled with a corresponding increase in project debt financing, could scale the joint venture up to an aggregate of $1.5 billion of solar projects developed by SunEdison. Qualifying projects will be constructed in the targeted markets of the U.S., Italy, Spain and Canada. SunEdison will lead the project identification and development process, and First Reserve will lead the project financing efforts. Once constructed, the projects will be purchased by the joint venture and then operated and managed by SunEdison. SOURCE: [link=]SunEdison[/link]

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