US-based renewable energy development company SunEdison has formed a $1bn warehouse investment vehicle along with funds managed by Goldman Sachs Group in a bid to fund construction and buy clean power plants.
The new investment vehicle WSIP Warehouse will obtain $300m equity from West Street Infrastructure Partners III and its affiliates managed by Goldman Sachs.
According to SunEdison, its unit TerraForm Power will have an exclusive call right over the warehoused assets.
Morgan Stanley, Bank of America and Deutsche Bank will offer $700m of debt in the form of a $500m, five-year term loan and a four-year revolving credit facility of $200m.
SunEdison can also expand the facility by up to $1bn to a total of $2bn, subject to certain conditions.
SunEdison chief financial officer Brian Wuebbels said: "SunEdison’s new $1 billion warehouse provides incremental capacity for SunEdison to construct and hold assets in advance of drop down to TerraForm Power.
"The WSIP Warehouse expands our capacity beyond our existing $1.5 billion First Reserve Warehouse and the $500 million dollar TerraForm Private Warehouse."
Goldman Sachs Merchant Banking Division Infrastructure Investment Group for the Americas head Edward Pallesen said:"We are excited to partner with SunEdison as we seek to expand our portfolio of investments in solar and wind projects.
"SunEdison and TerraForm Power have a proven track record of delivering high quality renewable energy projects, and we are pleased to be able to support their future growth initiatives."
Image: Goldman Sachs Tower, at 30 Hudson Street, in Jersey City. Photo: courtesy of Beyond My Ken