Courtesy of Benzinga.
Shares of Sunedison Inc (NYSE: SUNE) surged higher by nearly 8 percent Wednesday morning following the company's announcement that it will extinguish $336 million of 2020 exchangeable notes.
SunEdison noted that its whole-owned subsidiary, Seller Note LLC, entered into an agreement to extinguish all of its outstanding $336 million aggregate principle amount of 3.75 percent exchangeable notes due in 2020.
$121 million of the notes will be extinguished "shortly following the signing of the agreement" and the remainder will be extinguished "upon the transfer of the relevant projects."
SunEdison added that in return for extinguishing the notes, noteholders will receive equity interest in renewable energy assets and a specific number of Class A shares of TerraForm Power Inc (NASDAQ: TERP).
"We are very pleased to reach an agreement with the holders of the Exchangeable Notes to extinguish the debt." said Brian Wuebbels, SunEdison's chief financial officer. "We believe this was a mutually beneficial solution to deleverage our balance sheet by selling our under development assets as well as the Company's shares of TerraForm Power."
Shares traded recently at $5.23, up 4.1 percent.
Posted-In: Solar Power SunEdison TerraForm Power YieldCoNews Movers
