Sunedison Inc (SUNE) Reaches Debt Deal And Takes Stake in DC Solar Portfolio


Boy has it been a roller coaster ride for shareholders of Sunedison Inc (NYSE:SUNE) lately. The stock, which plunged over 8% yesterday, is up big this morning in the pre-market. Shares are trading up $0.42 or 8.37% after the company announced that they have reached a debt deal and also took a stake in a DC solar portfolio owned by Dominion Resources Inc.

Sunedison Inc (NYSE:SUNE) announced that their subsidiary will be extinguishing $336 million in debt by providing their debtholders an interest in projects they are working on, along with shares of TerraForm Power Inc. Shareholders seem to like the news, which does not appear to dilute their stakes, This had been a major concern leading up to finalizing these negotiations.

Additionally Terra Nova Renewable Partners, which is a partnership between Sunedison Inc (NYSE:SUNE) and investors, has taken a 33% stake in a DC solar portfolio capable of producing 336 MW of power. As a part of the deal SunEdison will have the option to purchase the assets held by the partnership within 5 years.The stock closed at $5.02 during the last trading session. It is down 83.64% since May 27, 2015 and is downtrending. It has underperformed the S&P500 by 81.37%.

From a total of 2 analysts covering Sunedison (NASDAQ:SUNE) stock, 2 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $45 while the lowest target price is $20. The mean of all analyst targets is $30 which is 497.61% above today’s ($5.02) stock price. Sunedison was the topic of 9 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank maintained shares on September 6 with a “Buy” rating. Credit Suisse maintained shares with a”Outperform” rating and a $45 target share price in their report from an August 7. JP Morgan initiated SUNE stock in a recent report from August 31 with a “Overweight” rating. Finally, Robert W. Baird maintained the stock with a “Hold” rating in a report they issued on an August 18.

SunEdison, Inc. is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a developer and maker of silicon wafers. The company has a market cap of $1.74 billion. The Firm operates in three divisions: Solar Energy, TerraForm Power and Semiconductor Materials through SunEdison Semiconductor Ltd. (SSL). It currently has negative earnings. The Company’s Solar Energy segment provides solar energy services that integrate the design, installation, financing, monitoring, activities and maintenance portions of the downstream solar market for the Company’s customers.