Vivint Solar to Be Acquired by SunEdison, TerraForm Power
SunEdison and Vivint Solar have signed a definitive merger agreement pursuant to which SunEdison will acquire Vivint Solar, a U.S. provider of residential solar systems, for approximately $2.2 billion, payable in a combination of cash, shares of SunEdison common stock and SunEdison convertible notes.
Concurrently with the completion of SunEdison’s acquisition of Vivint Solar, TerraForm Power, a SunEdison subsidiary, 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 (TERP Purchase Agreement). The 523 MW of residential solar projects are expected to provide a 10-year average unlevered CAFD of $81 million, and provide a 10-year average levered cash-on-cash yield of 9.5 percent.