SunEdison Shares Plunge On Debt Restructuring

(RTTNews) - Shares of SunEdison Inc. (SUNE) dropped almost 40% on Thursday as the solar-power company issued bonds and announced other financial transactions.

SUNE closed Thursday's trading at $3.34, down $2.17 or 39.38%. However, in after hours, the stock gained $0.10 or 2.99%.

The company announced the pricing of $725 million of Second Lien Secured Term Loans and also that it has entered into a series of exchange agreements with certain holders of its Convertible Senior Notes due 2018, 2020, 2022 and 2025 and its Perpetual Convertible Preferred Stock , under which such holders have agreed with the Company to certain exchange transactions.

The Exchange Transactions and funding of the amounts under the Second Lien Facilities are expected to close on January 11, 2015, subject to customary closing conditions.

The company expects to receive $725 million in gross cash proceeds from the Second Lien Facilities. The proceeds from the Second Lien Facilities will be used to repay all of the outstanding indebtedness under the Company's existing second lien credit facility (approximately $170 million), interest, transaction costs, and for general corporate purposes.

The Second Lien Facilities will be comprised of $500 million of A1 loans, and $225million of A2 loans, each of which will bear interest at a rate of LIBOR + 10.0% per annum and will mature on July 2, 2018. Lenders under the A1 portion of the facilities will receive warrants exercisable at any time for an aggregate of 19.8 million shares of common stock, and lenders under the A2 portion of the facilities will receive warrants exercisable at any time for an aggregate of 8.9 million shares of common stock, in each case at an exercise price of $0.01 per share. The Second Lien Facilities will contain customary covenants, representations and warranties and events of default.

In the Exchange Transactions, SunEdison has agreed to issue $225 million aggregate principal amount of new senior secured convertible notes due 2018 in exchange for, in the aggregate, $40.5 million principal amount of the 2020 Notes, $106.9 million principal amount of the 2022 Notes, $97.0 million principal amount of the 2023 Notes and $91.4 million principal amount of the 2025 Notes.

SunEdison has agreed to issue a total of an estimated 28.0 million shares of common stock in exchange for, in the aggregate, $44.3 million principal amount of the 2018 Notes, $71.0 million principal amount of the 2020 Notes, $10.5 million principal amount of the 2021 Notes, $37.0 million principal amount of the 2022 Notes, $43.0 million principal amount of the 2023 Notes and $38.5 million principal amount of the 2025 Notes.

SunEdison has agreed to issue a total of an estimated 11.8 million shares of common stock in exchange for, in the aggregate, $158.3 million (or 158,327 shares) of the Preferred Stock.