TerraForm Global Cancels 326 MW Deal In Central America

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TerraForm Global, SunEdison’s emerging markets yieldco, has cancelled a 326 MW portfolio deal in Central America.

In a statement submitted to the United States Securities and Exchange Commission, TerraForm Global confirmed that it was terminating an agreement that was originally made back in June of 2015 with Globeleq Mesoamérica Energy, Central America’s leading wind energy company.

Specifically, the agreement was for four wind power projects and a solar power project in Honduras, Costa Rica, and Nicaragua, representing an aggregate of 326 MW. TerraForm Global was set to pay $337.9 million in cash and 701,754 shares of the Company’s Class A common stock, plus interest of 15% per annum on the purchase price.

The agreement was terminated when the receipt of consents from project lenders were not provided by the agreed upon date. The terms of the deal allowed either side to terminate the agreement if the transaction was not closed by March 12.

This is the latest in a string of difficulties for SunEdison and its yieldcos, which climaxed last week when SunEdison failed to report its Q4 and full year 2015 financial results. In early March, SunEdison and TerraForm Power — the company’s first yieldco — settled on the termination of a deal with Latin America Power Holding. This was followed by the announcement that Vivint Solar had terminated an acquisition agreement with SunEdison, and would be following up with legal action.

Continuing a now long-running trend, SunEdison’s shares dropped slightly after news of the terminated agreement on Monday, dropping below $2 before settling at $2.01, down 5% on the days trading.

It is more bad news for a company that has gone from being the world’s leading renewable energy developer, to suffering defeat after defeat.