By Lisa Beilfuss
First Solar Inc. and SunPower Corp. said Tuesday that their
joint venture 8point3 Energy Partners LP has filed for an initial
public offering.
8point3, formed last month by the two solar companies to own and
operate a portfolio of solar generation assets, will list its
shares on the Nasdaq. The number of shares to be listed hasn't yet
been determined.
First Solar, based in Tempe, Ariz., designs, manufactures and
distributes solar power systems and modules. San Jose-based
SunPower similarly designs and manufactures solar electric systems
that it distributes to residential and commercial customers.
The two companies unveiled the formation of 8point3, known as a
yieldco, in late February, at which point they said they expected
to register for an IPO by the end of this month. According to the
filing, the name 8point3 is derived from the average amount of time
it takes light from the sun to reach the earth, which is 8.3
minutes.
Yieldcos, considered an alternative to master limited
partnerships and real-estate investment trusts, are particularly
attractive as a financing mechanism in the renewable space on
account of uncertainty during a project's development stage. They
allow companies to raise low-cost capital, maintain long-term
contracts and pay dividends to shareholders.
Last July, SunEdison raised more than $500 million in its
initial public offering of its yieldco TerraForm.
Shares of both First Solar and SunPower traded slightly lower in
morning trading but have notched double-digit gains since
announcing the formation of 8point3.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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