Monday, August 17, 2015

Renewable Yieldco, TerraForm Global, Floats 7-Year Debt With a 9.75% Coupon (GLBL; SCTY)

That is expensive money.
From AltEnergyStocks:

Green Bonds From Terraform Global, SolarCity, and Hannon Armstrong 
Yieldco TerraForm Global (GLBL) issues a whopping $810m green bond (7 years, 9.75%, B2/B+)
TerraForm Global Operating has issued an $810m green bond, with 7-year tenor, 9.75% coupon and ratings of B2 and B+ from Moodys and S&P respectively. TerraForm Global is a recent yieldco spin off (IPO last month) of SunEdison (SUNE) group (have a look here if the yieldco concept is new to you).
Terraform Global owns and operates renewable energy assets - solar, wind and hydro - in emerging markets, in the following locations:
  • Solar: China, India, South Africa, Honduras, Uruguay, Malaysia and Thailand.
  • Hydro: 6 projects in Peru (for 336MW aggregate capacity), as well as 3 small operational hydro projects in Brazil (aggregate capacity of 42MW).
  • Wind projects: China, Brazil, South Africa, India, Honduras, Costa Rica and Nicaragua.
The emerging market focus sets Terraform Global apart from its sister-yieldco Terraform Power Operating, which has so far issued 3 bonds for a total of $1.25bn, but who only has one emerging market project, in Chile. Their renewable energy power plants are predominately in the US, with some assets in Canada and UK.
Terraform is really showing the potential for yieldcos to issue green bonds to finance renewable energy in a wide range of countries – way to go!...
...MORE, including some comment on the SolarCity ABS.

Here's the Aug. 13 SolarCity announcement:
SolarCity Completes Fourth Securitization Offering