SunEdison To Buy Vivint; TerraForm To Buy Vivint Solar's Rooftop Solar Portfolio

(RTTNews) - SunEdison, Inc. (SUNE) announced a definitive merger agreement pursuant to which SunEdison will acquire Vivint Solar (VSLR) for approximately $2.2 billion. Vivint Solar stockholders will receive $16.50 per share, consisting of $9.89 per share in cash, $3.31 per share in SunEdison stock, and $3.30 per share in SunEdison convertible notes.

The transaction expands SunEdison's RSC platform and is intended to accelerate the company's existing business in the United States, United Kingdom and Australia. SunEdison initiated 2016 annual guidance of 4,200 MW to 4,500 MW, a 50 percent increase from its prior outlook of 2,800 MW to 3,000 MW.

In connection with the proposed acquisition of Vivint Solar, SunEdison has entered into a definitive purchase agreement with a subsidiary of TerraForm Power (TERP), an owner and operator of clean energy power plants, which, concurrently with the completion of SunEdison's acquisition of Vivint Solar, will acquire Vivint Solar's rooftop solar portfolio, consisting of 523 megawatts for $922 million in cash.

TerraForm Power will also acquire future completed residential and small commercial projects from SunEdison's expanded residential and small commercial business unit.

TerraForm Power said it is raising prior 2016 dividend per share guidance of $1.70 to $1.75, a 30 percent year-over-year increase compared to 2015 annual guidance. TerraForm Power is also initiating 2017 dividend per share guidance of $2.05, up from its prior target of $2.00.