- After having more than doubled from a November low of $2.55 as a series of asset sales, deal restructurings, and refinancing moves gave hope to investors worried about a massive debt load and a tougher financing environment, SunEdison (SUNE) gave back more than 70% of its gains today following news the company is carrying out a second lien loan offering and converting note/preferred share exchanges that stand to cause significant dilution. Shares were briefly halted for volatility in afternoon trading.
- If the warrants attached to the loan offering are fully exercised, the transactions stand to increase SunEdison's share count by over 21% from a Q3 level of 316M.
- Many solar peers also saw steep losses (though not as large as SunEdison's) on a day the Nasdaq fell 3%, and the S&P 2.4%. The Guggenheim Solar ETF, which had 6.1% of its assets in SunEdison shares as of yesterday, closed down 9.2%.
- Two months ago: JPMorgan: SunEdison can avoid bankruptcy ... at a price