Appaloosa, Brookfield May Jointly Bid for SunEdison's Terraform Power Stake

   By Josh Beckerman 
 

Appaloosa Management LP and Brookfield Asset Management Inc. (BAM, BAM.A.T) are considering a joint bid for SunEdison Inc.'s stake in yieldco Terraform Power Inc.

Terraform said in a regulatory filing Friday that Appaloosa and Brookfield met on Monday and signed a "letter agreement" on Friday.

Appaloosa and Brookfield jointly have aggregate economic exposure to 34.4% of Terraform's Class A share, according to the filing.

Brookfield disclosed a nearly 25% stake, including derivatives, in the noncontrol shares of TerraForm late last month.

The letter agreement indicates Appaloosa and Brookfield plan to enter a definitive pact to bid for SunEdison's shares of Terraform, but aren't obligated to do so.

SunEdison filed for bankruptcy in April. It grew rapidly and had a market value that approached $10 billion in 2015, but its debt-fueled expansion was hurt by falling oil prices and turbulence in capital markets.

Part of its strategy involved the formation of two yieldcos, Terraform Power and TerraForm Global Inc.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

July 22, 2016 20:49 ET (00:49 GMT)

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