Officials at SunEdison were not immediately
available for comment.
SunEdison's shares have climbed from $1.50 in 2012 to over $20,
which is over 50 times the most optimistic Wall Street cash flow
forecast for next year, the article said.
The yieldco would be a publicly-held subsidiary that would own
SunEdison's finished solar projects and pay out most of the
projects' cash flow, tax-free, thanks to tax breaks available to
owners of renewable power plants, Barron's said.
The article warned that "aggressive tax strategies," like those
likely planned for SunEdison's yieldco "could draw unwelcome
scrutiny when the renewable power industry lobbies Congress to
extend the industry's tax subsidies past 2016."
Barron's calculated that more than half of the value created by
SunEdison's yieldco comes from tax benefits.
The company declined to answer Barron's questions because the
yieldco is in its registration "quiet period" with the U.S.
Securities and Exchange Commission, according to the article.
(Reporting by Scott DiSavino; Editing by Marguerita Choy)
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