SunEdison to sell up to $417 million in TerraForm stock

The details of Brookfield’s acquisition of TerraForm Power from SunEdison are showing a situation where none of the main parties lose, including SunEdison. As revealed in a securities registration form yesterday, the company that is now a shell of what was formerly the world’s largest solar and wind developer stands to gain $417 million from the sale of its shares in yieldco TerraForm Power.

This is the end of the road for majority ownership by SunEdison, which nearly dragged down its two yieldcos in its bankruptcy, including a mess of legal claims and counter-claims between TerraForm Power, TerraForm Global and their former sponsor. As the conclusion of this, last month Canadian asset manager Brookfield acquired a majority stake in TerraForm Power. An acquisition of TerraForm Global is also pending.

TerraForm Power issued new stock to give Brookfield a 51% share in the company, which has left SunEdison free to either acquire new TerraForm shares or sell its stock in the company to the highest bidder. According to a registration statement filed by TerraForm, SunEdison will sell 34 million shares at a maximum price of $12.16 per share, for a total of up to $417 million in proceeds.

This accounts for a minority of the outstanding shares at the time of the acquisition, as most stockholders kept their stakes.