TPI Composites filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $150 million. The company intends to list its shares on the Nasdaq Global Market under the symbol TPIC.
The underwriters for this offering are JPMorgan, Morgan Stanley, Cowen, Raymond James and Canaccord Genuity.
This is the largest U.S.-based independent manufacturer of composite wind blades. TPI enables many of the industry’s leading wind turbine original equipment manufacturers (OEMs) who have historically relied on in-house production to outsource the manufacturing of some of their wind blades through its global footprint of advanced manufacturing facilities strategically located to serve large and growing wind markets in a cost-effective manner.
Considering the importance of wind energy capture, turbine reliability and cost to power producers, the size, quality and performance of wind blades have become highly strategic to OEM customers. As a result, the company has become a key supplier to its OEM customers in the manufacture of wind blades and related precision molding and assembly systems.
TPI has entered into long-term supply agreements pursuant to which it dedicates capacity at its facilities to customers in exchange for their commitment to purchase minimum annual volumes of wind blade sets, which consist of three wind blades.
At the end of March 2016, long-term supply agreements provided for estimated minimum aggregate volume commitments from customers of $1.5 billion and encouraged customers to purchase additional volume up to, in the aggregate, an estimated total contract value of over $3.0 billion through the end of 2021. This collaborative dedicated supplier model provides TPI with contracted volumes that generate significant revenue visibility, drive capital efficiency and allow it to produce wind blades at a lower total delivered cost, while ensuring critical dedicated capacity for customers.
The company intends to use the net proceeds from this offering to repay its indebtedness, with the remainder going toward working capital and general corporate purposes.
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