SunEdison Announces Pricing Of Convertible Senior Note Offering

Posted by SI Staff on June 05, 2014 No Comments
Categories : New & Noteworthy

SunEdison Inc. has announced the pricing of its offering of $500 million aggregate principal amount of 0.25% convertible senior notes due 2020 in a private placement.

The notes will be offered by the initial purchasers only to qualified institutional buyers. The offering is expected to close on June 10, 2014, subject to customary closing conditions.

The company has also granted the initial purchasers a 30-day option to purchase an additional $100 million aggregate principal amount of notes on the same terms and conditions. The notes will bear interest at a rate of 0.25% per year, payable semiannually. The notes will mature on Jan. 15, 2020, unless earlier converted or purchased.Â

The initial conversion rate for the notes will be 37.2148 shares of common stock per $1,000 principal amount of the notes – subject to adjustment. The rate is equal to an initial conversion price of approximately $26.87 per share. SunEdison estimates that the net proceeds from this offering will be approximately $487 million or approximately $584.5 million, if the initial purchasers exercise their option to purchase additional notes in full.

SunEdison says it intends to use up to $400 million of the net proceeds from this offering to fund acquisitions, development and construction costs and the repayment of project indebtedness for solar projects to be contributed to TerraForm Power Inc., its yieldco subsidiary, or operating solar projects. The company intends to use the remaining net proceeds to fund working capital, the cost of convertible note hedge transactions and other general corporate purposes.

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