SunEdison Shares Jump as Company Discloses Financing Talks

  • Discussions include potential $650 million second lien
  • Talks include existing investors and lenders, company says

SunEdison Inc. climbed almost 10 percent after saying it’s been in talks about securing new financing, in the latest twist for a company that’s seen shares soar and plunge amid questions about its spending and acquisitions.

The world’s biggest renewable-energy developer has been in talks about potential funding since Dec. 10, including discussions about a second lien worth as much as $650 million, according to a regulatory filing today. SunEdison rose 9.8 percent to $5.92 at the close of today’s holiday-shortened trading session.

The company’s shares have been on a roller coaster since July, when Chief Executive Officer Ahmad Chatila announced plans to buy residential solar installer Vivint Solar Inc. and sell shares in a holding company, TerraForm Global Inc.

The stock jumped 25 percent in a day last week after the U.S. extended key tax credits for renewables projects. It then slid 21 percent on Monday after hedge-fund Appaloosa Management LP demanded information about acquisitions and a management shakeup.

SunEdison has had ongoing financing discussions, including with current investors and lenders, according to today’s filing. A portion of proceeds from the potential $650 million second lien credit facility would be used to repay the company’s existing second lien facility, it said. The new facility may include “a significant amount" of SunEdison’s outstanding equity.

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