SunEdison sets at 0.25% interest on USD 500m convertible bond

Jun 5, 2014 - US solar technology firm SunEdison Inc (NYSE:SUNE) said today that the USD 500 million (EUR 369m) in convertible senior notes it plans to sell will bear an interest of 0.25% per year.

Interest will be payable semiannually starting from January 15, 2015. The unsecured convertible notes for private placement will mature on January 15, 2020. They will be convertible into cash, common shares or a combination of both at an initial conversion price equivalent to about USD 26.87 apiece.

SunEdison plans to give the underwriters a 30-day option to buy an additional USD 100 million worth of notes. Should they make use of that right in full, the company expects to receive total net proceeds of around USD 584.5 million.

As previously-announced, the company will allocate between USD 350 million and USD 400 million of the net proceeds to finance solar plant purchases and cover development and construction expenses, as well as repay debt on solar parks held by its yield-co unit TerraForm Power. The remaining funds will go to the solar group’s working capital and to support the cost of convertible note hedge transactions.

The transaction is seen to close on June 10, 2014.

(USD 1.0 = EUR 0.738)

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