Tuesday, October 26, 2010

First Wind IPO will go ahead this week

First Wind Holdings has this week filed a registration statement with the US Securities and Complaints Commission (SEC) in preparation for an initial public offering (IPO) on Nasdaq that is expected to be realised this week.

‘I’m afraid we can’t confirm, other than to say we’ve recently filed documents with the SEC. We will make a determination this week,’ said John Lamontagne, director of corporate communications at First Wind.

First Wind would look to make up to $300m from the listing of 12 million shares at between $24 and $26 each, reports indicate.

But the filing may be in jeopardy due to the company’s outstanding debt, which amounted to $582.2m in September. Having never reached profitability, the company’s losses stood at $233m at the end of the latest financial quarter.

According to documents filed with the SEC, First Wind’s assets increased to more than $6.8m at the end of fiscal year 2009 from $2.3m at the end of the previous year.

The company was awarded a $117m loan guarantee from the US Department of Energy in July for its Oahu-based Kahuku Wind project, but the company’s current overhanging debt raises questions as to whether all the funding will be provided.

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