SunEdison Jumps 6% on Formation of Acquisition Fund with Goldman, Banks
Shares of solar installation firm SunEdison (SUNE) are up 82 cents, or almost 6%, at $15.50, in late trading, after the company said it formed a $1 billion fund for construction and acquisition of assets in the solar energy field.Previously:
The so-called warehouse investment vehicle is backed by $300 million in equity financing from West Street Infrastructure Partners III, an investment vehicle of Goldman Sachs (GS). It also has $700 million in debt financing.
Bank of America, N.A., Morgan Stanley Senior Funding, Inc. and Deutsche Bank AG, New York Branch....MORE
Solar: SunEdison Reports Losses, Drops 24% (SUNE)
Saaay, This "Financing Solar" Might Be for Real: SunEdison up 9% On 'Yieldco' IPO News (SUNE)
Chasing Yield: The Solar Yieldco
Solar: SunEdison Saves the Day (SUNE; FSLR; TSL; TAN)
Solar: The REAL Money is In The Financing (SolarCity Up 20% on earnings) SCTY; GOOG
"Time To Buy Solar Yieldcos Hurt By Oil’s Decline – Morgan Stanley" (SUNE; NYLD; ABY)
Solar has linkages to the cost of natural gas, electricity, coal and interest rates.Solar: Meet the New Boss, Same as the Old Boss (SCTY; SUNE; TERP)
Not to oil.
We aren't saying that you won't get clobbered by rising interest rates if you own these but want to point out this as an example of going counter the herd when a correlation is spurious.
On the other hand you have all the problems of structures that can't use earnings to pay for anything and so have to continually issue shares or debt.
We don't use them but yieldcos do have a place in some portfolios....
Amid heartfelt We Shall Overcome's and speechifying about decentralized solar sticking it to the man-in the form of your local utility-is the dawning realization that the panels going on residential rooftops are owned by financial forces that are orders of magnitude larger than the utilities they replace....Here are the last ten months's action in SUNE:
