Yesterday, 9:19 AM
Wed, Nov. 25, 12:46 PM
Wed, Nov. 25, 9:11 AM
- UBS has downgraded both SunEdison (NYSE:SUNE) and its TerraForm Power (NASDAQ:TERP) YieldCo to Sell. The former has fallen to $3.93 premarket, and the latter to $8.30.
- The downgrades come a day after SunEdison's beaten-down shares rose 37.3% following news the company has paid down $95M of a $100M margin loan, and is selling 425MW of Indian assets to TerraForm Global. Two days ago, SunEdison announced it's putting CFO Brian Wuebbels in charge of its YieldCos, and giving chairman Manny Hernandez a more hands-on role.
- Needham's Edwin Mok (Buy rating) is talking up SunEdison's recent moves. "We see the management shake-up at the board level and the yieldcos, the drop down of higher yield projects to GLBL, and SUNE's pay down of the margin loan as positive signs that SUNE is responding to investor concerns regarding its liquidity and cash flow generation ... As SUNE continues to improve the operation structure, we see potential for shares to move higher given the depressed levels."
Tue, Nov. 24, 5:39 PM
Tue, Nov. 24, 10:14 AM
- SunEdison (SUNE +6.3%) has paid down $95M under a margin loan from Deutsche. Only $5M is remaining on the loan, which accounted for a small portion of the $11.7B in debt SunEdison had at the end of Q3. (8-K filing)
- The company has also agreed to sell 425MW of Indian projects to its TerraForm Global (GLBL -2.8%) YieldCo for $231M in stock, subject to purchase price adjustments. A portion of the payment was made on Nov. 20, and the rest will be made on or before Dec. 7, 2016. Part of the initial payment was used to pay down SunEdison's margin loan.
- The projects will replace "a portion of the projects and the associated CAFD that were part of TerraForm Global's initial portfolio, which have subsequently been terminated acquisitions." SunEdison CFO/new GLBL CEO Brian Wuebbels: "This transaction provides higher yields replacing lower-yielding IPO projects that were intended to be acquired through M&A and is consistent with our strategy to focus on organic growth provided by our sponsor."
- Reuters previously reported SunEdison was looking to sell ~400MW of Indian solar plants for ~$350M. A SunEdison exec talking with Reuters declined to comment on an Indian sale, but affirmed his company is looking to unload some assets. "To grow you need capital. Our balance sheet does not have the necessary capital." He added SunEdison has terminated a deal (previous) to buy Indian wind project developer Continuum.
- Prior SunEdison coverage
Tue, Nov. 24, 9:17 AM
Mon, Nov. 23, 9:19 AM
Mon, Nov. 23, 8:08 AM
- SunEdison (NYSE:SUNE) chairman Manny Hernandez has been promoted to the role of executive chairman, under which he'll work with CEO Ahmad Chatila and the rest of the management team to "improve the alignment and effectiveness of [SunEdison's] operating structure, drive operational efficiency and focus on its organic development opportunities."
- CFO Brian Wuebbels will now also serve as the CEO of TerraForm Power (NASDAQ:TERP) and TerraForm Global (NASDAQ:GLBL). He replaces Carlos Domenech, who is leaving the company.
- Peter Blackmore is stepping down from SunEdison's board, and will become the chairman of both TERP and GLBL, replacing Chatila. Steven Tesoriere has resigned from the TERP and GLBL boards, but will remain on SunEdison's board.
- SUNE +2.9% premarket to $2.89. Shares remain down 62% from where they traded prior to SunEdison's Nov. 9 Q3 report.
- Prior SunEdison coverage
- Update (10:05AM ET): SunEdison is now up 13.7%.
Fri, Nov. 20, 10:37 AM
- JPMorgan's Paul Coster: "We think SUNE is still able to escape the ongoing liquidity crisis, but at a high cost owing to M&A over-commitment, reduced cash flow from the YieldCos, increased use of high-cost financing options and the negative impact this has on DevCo revenue-growth and margins relative to our prior expectations." He has downgraded the beleaguered solar/wind project developer to Neutral, and cut his target by $14 to $5.
- While Coster thinks SunEdison (SUNE -5.4%) can avoid bankruptcy, he argues risks still remain related to the Vivint Solar and Renova deals, along with "the need to execute a pivot to DevCo cash sales at decent margin against the backdrop of distractions." He has cut his annualized shipment and gross margin estimates, and significantly lowered dividend growth rate estimates for the TerraForm Power and TerraForm Global YieldCos.
- Coster: "We think the stock is somewhat undervalued, the firm’s development and operational assets are high quality, but the situation is complicated, fluid and risky, so we move to the sidelines, deeply disappointed that we did not do so ahead of the 'death-spiral' ... By our calculation, SUNE remains liquid through 2016-2019, positioned to roll over debt in 2020."
- Shares are lower once more, and now down 63% from where they traded before SunEdison's Nov. 10 Q3 report.
- Two days ago: Deutsche defends SunEdison after talking with management
Thu, Nov. 19, 9:14 AM
Wed, Nov. 18, 5:44 PM
Wed, Nov. 18, 5:01 PM
Wed, Nov. 18, 2:57 PM
- SunEdison (NYSE:SUNE) has spiked on a rumor Blackstone is willing to backstop the company's recourse debt (has become a major concern this week).
- The company's TerraForm Power (TERP -6.3%) YieldCo has pared its losses for the day. TerraForm Global (GLBL -15.5%) remains down sharply.
- With 87.1M shares (nearly a third of the float) shorted as of Oct. 30, and many shorts possessing big profits, short-covering could be helping out.
- Earlier: Deutsche defends SunEdison's balance sheet after talking with management
- Update (5:02PM ET): Reuters reports Blackstone's credit arm isn't looking to invest in SunEdison. Shares have given back their gains in after hours trading.
Wed, Nov. 18, 8:27 AM
- SunEdison (NYSE:SUNE) doesn't need to raise more equity for its solar/wind project warehouse vehicles, and merely needs to raise project debt for a JPMorgan warehouse, says Deutsche's Vishal Shah (Buy rating) after meeting with management.
- In a run-down of what he considers the top investor questions amid SunEdison's plunge, Shah attributes SunEdison's Q3 reclassification of $739M in debt from non-recourse to recourse as partly due to the selloff in TerraForm Power shares, and partly due to a prior clerical error.
- He doesn't think SunEdison can get out of the oft-criticized Vivint Solar (NYSE:VSLR) deal, deemed likely to close in late 2015 or early 2016. The sale of Vivint's operating assets to a third party is viewed as an option.
- Shah notes SunEdison still has ~$1.35B in cash, with ~$700M held in project companies and earmarked for working capital. "Timing of cash movements and the fact that SUNE gets EPC margin from these projects means that the cash can be utilized for other capital needs."
- Regarding what management can do to prop up shares, Shah thinks both the Vivint and Invenergy deals need to close, observes SunEdison is looking to solve its margin loan issues by refinancing/repaying debt, and is trying to sell a "large portfolio of operating assets to strategic investors such as Dominion." He expects the stock to rebound as confidence grows in SunEdison's ability to fix liquidity issues.
- Shares are up fractionally premarket. They fell 33.8% yesterday.
- Prior SunEdison coverage
Tue, Nov. 17, 1:19 PM
- SunEdison (NYSE:SUNE) has plunged below $4 as debt/liquidity fears refuse to let up. Today's losses come a day after research firm CreditSights noted the solar/wind project developer had apparently reclassified $739M in debt as recourse debt, thus giving its lenders access to more collateral.
- The selloff also comes after Vivint Solar (VSLR -3.3%) posted a Q3 beat after the close yesterday afternoon. Vivint, which SunEdison remains committed to acquiring in spite of calls for the company to cancel the deal, reported Q3 bookings of 71MW (+15% Y/Y) and installations of 61MW (+24%).
- Meanwhile, Q3 13F filings indicate Dan Loeb's Third Point LLC wasn't alone among hedge funds in selling SunEdison shares last quarter. David Einhorn's Greenlight Capital cut its position by 25% to 18.6M shares; Leon Cooperman's Omega Advisors also lowered its stake, and Stephen Mandel's Lone Pine Capital liquidated.
- Shares are now down 53% since SunEdison's Nov. 10 Q3 report, and 82% YTD. The company's TerraForm Power (TERP -15.7%) YieldCo is also seeing big losses, while its TerraForm Global (GLBL -3.2%) YieldCo is down more moderately.
- Prior SunEdison coverage
Tue, Nov. 17, 12:47 PM
SunEdison Inc is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets. The Company is also engaged in the development, manufacture and sale of silicon wafers to the semiconductor industry.
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