Wednesday, June 17, 2015

"First Solar, SunPower Yieldco IPO Slated For Friday" (CAFD; FSLR: SPWR)

From Investors Business Daily:
The yieldco 8point3 Energy Partners LP, formed by solar energy kingpins First Solar (NASDAQ:FSLR) and SunPower (NASDAQ:SPWR), is expected to raise approximately $420 million in an initial public offering scheduled to begin trading Friday.

Tempe, Ariz.-based solar module maker First Solar and San Jose, Calif.-based solar panel and system maker SunPower announced in February they would form the yield company, or "yieldco."

A yieldco is a publicly traded subsidiary that owns and operates power-generating assets to produce revenue from long-term contracts to sell electricity to utilities and issue regular dividends to shareholders. First Solar and SunPower will retain a significant stake in the yieldco, which can provide capital to fund new projects at lower rates than the complex tax-equity investments and bank debt now commonly used in the solar industry.

The solar companies expect to sell 20 million shares at 19 to 21, for their joint yieldco called 8point3 Energy Partners. The yieldco will be listed on the Nasdaq under the symbol CAFD.

The yieldco will have about 432 megawatts of solar projects in its portfolio, including 262 MW of utility-scale projects from First Solar and 170 MW of utility and other projects from SunPower....MORE
First Solar's hometown paper (okay, Phoenix, not Tempe) was reporting yesterday:
First Solar, SunPower spin-off sets IPO price
and informed us CAFD stands for "Cash available for distribution".

Here's the S-1 IPO registration .