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SunEdison drops after upsizing, pricing convertible debt offering

  • SunEdison (SUNE -2.1%) has upsized its convertible debt offering to $1B from $800M; the company will sell $500M worth of senior notes due 2018, and an equal quantity of notes due 2021. (PR)
  • Net proceeds are expected to total $974.2M. As previously stated, SunEdison plans to use $750M of the proceeds to pay down existing high-interest debt.  The rest will be used for hedge transactions and "general corporate purposes."
  • The 2018 notes carry an interest rate of 2%, and the 2021 notes a rte of 2.75%. Both sets of notes have an initial conversion price of $14.62/share; that represents a 30% premium to current trading levels.
  • Shares are adding to the losses they saw yesterday in response to SunEdison's Q4 warning.
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