SunEdison Yieldco TerraForm Global Charred On Loan Default Notice

By | May 13, 2016

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SunEdison yieldco TerraForm Global ( GLBL ) has 90 days to file its delayed 10-K or be required to immediately repay $810 million in defaulted loans, according to a U.S. Securities and Exchange Commission filing. Goldman Sachs and other lenders backing the 9.75% senior notes, due in 2022, agreed to reduce TerraForm Global’s commitment to $350 million. TerraForm Global has until June 30 to comply with Nasdaq listing requirements by turning over the late 10-K, the annual financial report that the SEC requires of all publicly traded companies. A number of energy companies have formed publicly traded yieldcos designed to hold assets and provide steady cash flows and certain tax benefits. Fellow yieldco TerraForm Power ( TERP ) is also facing Nasdaq threats of delisting. Neither SunEd nor either of its TerraForm yieldcos have turned over their 10-K reports. Parent SunEdison technically defaulted on $725 million in second-lien loans — unless extensions were granted — before declaring bankruptcy earlier this year. TerraForm Global has until June 30 to issue its report for the quarter ended March 31, and no more than 75 days after June 30 and Sept. 30 to report earnings for the quarters ended on those respective dates. “Failure to deliver such financial statements would constitute an event of default,” according to the Tuesday filing. If  TerraForm Global defaults on its loans, its lenders can declare the loan and interest immediately “due and payable,” according to the original agreement. Bloomberg estimates there is $760.4 million outstanding on the notes. In early trading on the stock market today , TerraForm Global stock was down 2.5%, near 2.60. Shares are down nearly 50% this year. TerraForm Power stock was up a fraction early Friday, near 8.80. Scalper1 News

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