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UPDATE 1-Hedge fund Appaloosa seeks to inspect Terraform's books

Published 2015-12-22, 10:09 a/m
© Reuters. UPDATE 1-Hedge fund Appaloosa seeks to inspect Terraform's books
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Dec 22 (Reuters) - TerraForm Power Inc TERP.O shareholder
Appaloosa Management LP said it wants to inspect the books of
the solar yieldco to learn more about its dealings with parent
SunEdison Inc SUNE.N .
Hedge fund Appaloosa, headed by David Tepper, said on
Tuesday its request was related to SunEdison's deal to buy
Vivint Solar Inc VSLR.N .
Funds affiliated with Appaloosa together own 7.6 million
shares, or 9.5 percent of the outstanding Class A Common stock
of TerraForm Power.
SunEdison agreed to buy rooftop panel installer Vivint Solar
in July. As a part of the deal, TerraForm Power would eventually
buy Vivint's residential solar rooftop portfolio.
SunEdison said on Dec. 9 that TerraForm would pay about $799
million for Vivint's portfolio, lower than the initial purchase
price of $922 million.
Appaloosa had said on Dec. 1 that Terraform Power's proposed
purchase of the assets represented a change in TerraForm's
business model and put shareholders at risk.
The hedge fund said it is seeking records of any analysis
conducted by the Terraform's board regarding valuation of
Vivint's assets to be acquired by TerraForm.
Tepper had earlier said that there was a "distinct
possibility" TerraForm Power would be forced to accept debt of
"dubious credit quality" from SunEdison if the Vivint deal went
through.
SunEdison shares were down about 24 percent at $5.12 in
morning trading, while Terraform Power's shares were down about
6.8 percent at $11.60.

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