8point3 Energy Partners LP, a limited partnership formed by First Solar, Inc. (NASDAQ:FSLR) and SunPower Corporation to own and operate a portfolio of selected solar energy generation assets, announced that it has priced an initial public offering (the “IPO”) of 20,000,000 Class A shares, representing limited partner interests in 8point3 Energy Partners (the “shares”), at a price of $21.00 per share. In addition, the underwriters have a 30-day option to purchase up to an additional 3,000,000 shares from 8point3 Energy Partners at the IPO price, less the underwriting discount. The shares of 8point3 Energy Partners will be listed on the NASDAQ Global Select Market under the symbol “CAFD” and begin trading on June 19, 2015.
8point3 Energy Partners intends to use all of the net proceeds of the IPO to purchase the common units of 8point3 Operating Company, LLC (“8point3Operating Company”), the entity that holds 8point3 Energy Partners’ project assets. 8point3 Operating Company intends to use the proceeds from the sale of its common units (i) to make a cash distribution to each of First Solar and SunPower and (ii) for general corporate purposes, including to fund future acquisition opportunities.
Goldman, Sachs & Co. and Citigroup Global Markets Inc. are acting as lead book running managers for the IPO. Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Credit Agricole Securities (USA) Inc. are acting as joint book-running managers for the IPO.
The offering will be made only by means of a prospectus. When available, copies of the final prospectus related to the IPO may be obtained from: Goldman, Sachs & Co., Attn: Prospectus Department, 200 West Street, New York, NY 10282 or by emailing [email protected]; or Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone 800-831-9146.
The registration statement relating to the securities has been declared effective by the Securities and Exchange Commission (the “SEC”) on June 18, 2015. Copies of the registration statement can be accessed through the SEC’s website at www.sec.gov. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
Shares of First Solar opened today at $52.04 and are currently trading down at $51.18. FSLR has a 1-year high of $73.78 and a 1-year low of $39.18. The stock’s 50-day moving average is $53.54 and its 200-day moving average is $52.36.
On the ratings front, First Solar has been the subject of a number of recent research reports. In a report released today, Needham analyst Edwin Mok reiterated a Buy rating on FSLR, with a price target of $73, which represents a potential upside of 40.3% from where the stock is currently trading. Separately, on May 26, RBC’s Mahesh Sanganeria downgraded the stock to Sell and has a price target of $34.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Edwin Mok and Mahesh Sanganeria have a total average return of 11.9% and 16.1% respectively. Mok has a success rate of 63.6% and is ranked #270 out of 3635 analysts, while Sanganeria has a success rate of 69.4% and is ranked #540.
The street is mostly Neutral on FSLR stock. Out of 6 analysts who cover the stock, 3 suggest a Hold rating , 2 suggest a Buy and one recommend to Sell the stock. The 12-month average price target assigned to the stock is $51.33, which represents a slight downside potential from current levels.
First Solar Inc is a provider of solar energy solutions. It designs, manufactures and sells PV solar modules with a thin-film semiconductor technology. It also manufactures crystalline silicon solar modules.