MEMC (WFR +4%) opens higher after announcing it has closed on a $200M term loan, secured by...

|By:, SA News Editor

MEMC (WFR +4%) opens higher after announcing it has closed on a $200M term loan, secured by nearly all of the company's assets. The loan carries a steep interest rate of LIBOR (minimum of 1.5%) + 9.25%, and features mandatory repayment provisions in the event of certain asset sales or new financing moves. MEMC had $1.8B in debt as of June 29, and has seen its cash flow situation deteriorate in tandem with its solar wafer sales. (S&P downgrade)