October 28, 2010
Rhode Island

Deepwater Wind investor delays IPO

By Chris Barrett, PBN Staff Writer, Providence Business News, www.pbn.com 28 October 2010

NEW YORK – First Wind Holdings LLC, an investor in Deepwater Wind, has delayed an initial public stock offering scheduled for Thursday.

Providence-based Deepwater Wind wants to develop a $200 million wind farm off Block Island, as well as a larger wind energy project, estimated to cost in excess of $1 billion, further off the Rhode Island coast in federal waters.

In 2008, First Wind provided Deepwater with a $3.4 million investment and today it owns approximately 10.3 percent of the company’s outstanding voting interest, according to filings with the Securities and Exchange Commission. The two companies also share an investor – hedge fund D.E. Shaw – and many board members. First Wind describes itself as holding “significant influence but not control over Deepwater.”

The company has also pledged $120 million to Deepwater, although the company has the right to opt out of the payments.

First Wind did not immediately return messages about the delay in its stock offering.

It has been trying for two years to go public, delayed by a market cool to initial public offerings in light of the turmoil in equity markets over the last few years.

The company is also laden with red ink. Eight-year-old First Wind lost $61 million last year, continuing a string of losses over the years, according to SEC filings. The company also held $449.2 million in long-term debt as of Sept. 30.

And this week, First Wind revised down the expected price for shares. Initially the company predicted selling them for $24 to $26 per share, but filings on Wednesday revised the price down to $18 to $20.

Under the revised prices, First Wind said it expected to generate about $207.8 million after estimated underwriting discounts and commissions, and estimated offering expenses. First Wind said it planned to use the cash to pay down debt and for development projects.

The company operates land-based wind farms in Hawaii, Maine, New York and Utah. It says it is developing additional farms in those states as well as Vermont.

URL to article:  https://www.wind-watch.org/news/2010/10/28/deepwater-wind-investor-delays-ipo/