SunEdison Seeks New $650 Million Credit Facility

Energy

Published: December 24, 2015 9:15 am

Last Updated: January 13, 2020 3:44 pm

In a filing with the U.S. Securities and Exchange Commission on Thursday morning, SunEdison Inc. (NYSE: SUNE) said it has been in talks to obtain a new $650 million credit facility. In premarket trading, the stock is up about 4% on the report.

Here’s what SunEdison said in its filing:

In particular, the Company has specifically been engaged in discussions relating to a new up to $650 million second lien credit facility, a portion of the proceeds of which would be used to repay the Company’s existing second lien credit facility. The Company is disclosing this information as part of an ongoing financing process and intends to continue to explore the potential second lien credit facility that may include a significant amount of the Company’s outstanding equity.

SunEdison’s entered its existing second lien credit facility in August of this year with Goldman Sachs Bank for $169 million at an annual interest rate of 9.25%.

Since early December, SunEdison has come under fire from hedge fund manager David Tepper for the way the company’s murky disclosure practices as related to TerraForm Power Inc. (NASDAQ: TERP), a yieldco controlled by SunEdison. SunEdison’s stock had plunged by more than 80% in the past 12 months, precipitated by a July collapse following SunEdison’s agreement to acquire Vivint Solar Inc. (NASDAQ: VSLR) for $2.2 billion. SunEdison’s shares posted their 52-week high, up more than 60%, just before the announced acquisition.

SunEdison’s stock has rebounded a bit in the past week, following the three-year extension of tax credits for new solar installations and following a price cut on its offer for Vivint and the company’s decision to quit a development project in Brazil. Cutting back on its aggressive growth moves has helped stop the bleeding. Whether the stock can regain more of its previous luster (i.e., share price) remains to be seen.

The stock traded up about 3.5% in Thursday’s premarket, at $5.58 in a 52-week range of $2.55 to $33.45.

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