Monday, August 11, 2008

Following On Heels of First Solar (FSLR)...Here Comes First Wind (WNDY)

First Solar (FSLR) has grown into a $20 billion+ behemoth. So maybe that's why "UPC Wind" changed it's name to "First Wind" before filing for its IPO.

Either way, this new speculative toy--a company that develops, builds, and operates North American wind farms--will soon be on the market under the ticker "WNDY". No word yet on if it is Boone Pickens-approved.

First Wind vital facts (full S1 here):

$12 million of revenue in 2007 and $69 million of losses. Revenue in Q1 declined year over year, $2.6 million to $2.3 million.

$190 million of property, plant, and equipment (turbines, etc.)
92MW (megawatts) of capacity in operation (in Hawaii, Maine and New York), and 182MW of wind capacity under construction.

720 MW at advanced development stage, 663MW at intermediate stage, and 3,907MW at early stage planning.

$132 million in losses since inception, completed a $143.6 million tax equity financing in 2007, and a $208 million tax equity financing in January 2008.
Current shareholders include management, DE Shaw and Madison Dearborn.

First Wind wants to raise $450 million from the IPO.

The company will use the cash to pay down its revolving credit and turbine supply loan, and fund additional development activity.
Lots of wind projects under development.

Bottom line: A huge capital hog that will likely take many years (if not forever) to generate a return on its capital investment.

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