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TerraForm: Appaloosa, Brookfield form group to buy SunEdison’s shares
By Caroline Salls
Pittsburgh, July 22 – Appaloosa LP and Brookfield Asset Management Inc. entered into a letter agreement under which they formed a group in connection with the purchase of shares of TerraForm Power, Inc. owned by SunEdison, Inc., according to a 13D filed Friday with the Securities and Exchange Commission by TerraForm.
TerraForm said Appaloosa met with representatives of Brookfield and its affiliates on July 18 to discuss Brookfield’s continued interest in purchasing SunEdison’s shares in TerraForm. As a sponsor of TerraForm, Brookfield also said it believed its acquisition of the shares would be in the best interest of all TerraForm stockholders.
Under the July 22 letter agreement, Appaloosa and Brookfield intend to enter into a definitive agreement to act as joint bidders for the potential purchase of SunEdison’s shares of TerraForm, although neither party has obligated itself to enter into an agreement.
The letter agreement also spells out restrictions on the ability of either party to transfer its TerraForm shares for a period of 90 days from July 22, and provides an exclusivity period to negotiate the definitive agreement during those 90 days.
According to the 13D, Appaloosa and Brookfield jointly have total economic exposure to 34.4% of TerraForm’s shares of class A common stock, consisting of 19.78 million shares that may be deemed, as a result of the letter agreement, to be beneficially owned by the group, and economic exposure to 11.58 million shares under swap agreements.
Based in Maryland Heights, Mo., SunEdison operates renewable power plants. It filed for bankruptcy on April 21 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 11 case number 16-10992.
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