Adage Capital Reveals New Investment In Post-IPO TerraForm Power Inc (TERP)

Phill Gross and Robert Atchinson, the managers of Adage Capital Management, see value in TerraForm Power Inc (NASDAQ:TERP), an energy company that recently went public. As reported in a filing with the Securities and Exchange Commission, Adage Capital has initiated a new position through the acquisition of approximately 2.4 million shares. As a result, the fund has control over 8.68% of TerraForm Power Inc (NASDAQ:TERP)’s common stock.

Phill Gross Adage Capital Management

Among the hedge funds that we track, Adage Capital is the first one to invest in TerraForm Power Inc. The company went public on July 17, in an Initial Public Offering (IPO) priced at $25 a share. The market welcomed the company with open arms: the stock rallied more than 35% on the debut. A total of 20 million Class A shares were offered, generating net proceedings of approximately $533.5 million. The company also issued options for the underwriters to buy up to 3 million shares at the IPO price, which were exercised in full. TerraForm Power Inc used the proceedings from the offering to repay some of its debt, to finance new solar projects and for other corporate purposes.