Karissa Neely – Daily Herald
Lehi-based provider of residential solar systems, Vivint Solar, announced a merger Monday morning with SunEdison, Inc., the world’s largest renewable energy development company. SunEdison will acquire Vivint Solar for approximately $2.2 billion, payable in a combination of cash, shares of SunEdison common stock and SunEdison convertible notes.
According to a joint press release, SunEdison has also entered into a definitive purchase agreement with a subsidiary of TerraForm Power, which, concurrently with the completion of SunEdison’s acquisition of Vivint Solar, will acquire Vivint Solar’s rooftop solar portfolio, consisting of 523 megawatts (MW) expected to be installed by year-end 2015, for $922 million in cash. The 523 MW of residential solar projects are expected to provide a 10-year average unlevered cash available for distribution (CAFD) of $81 million, and provide a 10-year average levered cash-on-cash yield of 9.5 percent.
The Vivint Solar management team will join SunEdison, and SunEdison’s existing residential solar development business and the Vivint Solar team will be merged. The transaction expands SunEdison’s residential and small commercial solar platform and is intended to accelerate SunEdison’s existing business in the United States, United Kingdom and Australia. It also will use Vivint Solar’s business model to attract residential solar within those countries. (…)