(Reuters) - U.S. solar company SunEdison Inc said it would form a $1 billion warehouse investment vehicle along with funds managed by Goldman Sachs Group Inc to fund construction and buy operating assets.
West Street Infrastructure Partners III and its affiliates, managed by Goldman Sachs, will provide $300 million equity for the investment vehicle, WSIP Warehouse, SunEdison said.
A syndicate of banks including Morgan Stanley, Bank of America Corp and Deutsche Bank AG will provide commitments of $700 million debt. Of this, $500 million will be a five-year term loan and $200 million a four-year revolving credit facility.
SunEdison will have the option to expand the facility by up to $1 billion.
“The WSIP Warehouse expands our capacity beyond our existing $1.5 billion First Reserve Warehouse and the $500 million dollar TerraForm Private Warehouse,” SunEdison Chief Financial Officer Brian Wuebbels said on Monday.
TerraForm Power Inc, a unit of SunEdison, will have an exclusive call right over the warehoused assets, the company said.
SunEdison agreed in July to buy Vivint Solar Inc, the second-biggest U.S. solar panel installer, in a deal valued at about $2.2 billion to speed up its expansion in the booming residential solar market.
Up to Monday’s close of $14.68, SunEdison’s shares had fallen about 25 percent this year.
Reporting by Anet Josline Pinto in Bengaluru