SunEdison stock surges on the announcement Wednesday of its intention to offer $500 million in convertible debt. Part of the proceeds will be used to fund acquisitions, development, and construction costs, as well as to repay debts.
Yesterday, SunEdison, Inc. (NYSE: SUNE), announced its intention to offer $500 million aggregate principal amount of convertible senior notes due 2020 in a private placement.
About $350 to $400 million of the net proceeds will be used to fund acquisitions, development, and construction costs and the repay debts for solar projects held by TerraForm Power, Inc., its yieldco subsidiary, or operating solar projects held on its balance sheet. The company will use the remaining net proceeds to fund working capital, accelerate growth of the business, and for other general corporate purposes, and the cost of convertible note hedge transactions.
Shares of SunEdison Inc. surged 6% on Wednesday’s news, to close at $20.67 yesterday, up $1.18.