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20 July 2015 By Kevin Allison

Stephen Schwarzman’s firm is selling panel-installer Vivint for $2.2 bln after a sizzling IPO last year. Buyer SunEdison will cover part of the 52 pct premium with an asset sale that may pay fat dividends. It will take more than a trendy industry and structure to recoup the price.

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Renewable energy company SunEdison on July 20 said it had agreed to buy Vivint Solar, the second-biggest U.S. solar panel installer, for $2.2 billion in cash and stock.

The deal is worth approximately $16.50 per share, a 52 percent premium to the value of Vivint’s share price at the close of trading on July 17.

SunEdison said its power-plant unit, TerraForm Power, would eventually buy Vivint’s 523-megawatt rooftop solar portfolio for $922 million.

TerraForm is a so-called yieldco, a listed company set up to acquire assets from SunEdison and pay out its cash flows to investors in the form of dividends.

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