Tag Archives: glbl

SunEdison Yieldco TerraForm Global Charred On Loan Default Notice

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.

SunEdison Files For Bankruptcy To ‘Right-Size’ Its Balance Sheet

Beleaguered solar developer SunEdison ( SUNE ) filed for Chapter 11 bankruptcy reorganization early Thursday after securing $300 million in debtor-in-possession financing, the company said in  a press release . The move had been expected. SunEdison stock, which crashed spectacularly in the second half of 2015, was up a fraction in early trading on the stock market today , at 35 cents. SunEd yieldcos — companies created to hold solar assets —  TerraForm Power ( TERP ) and TerraForm Global ( GLBL ) stocks were up a respective 7% and 8%. The SunEdison bankruptcy doesn’t include those yieldcos. SunEd CEO Ahmad Chatila described the Chapter 11 filing as a reorganization that will let SunEd “right-size” its balance sheet and reduce debt. As of Sept. 30 — SunEd’s last financial filing — the company had wracked up $11.7 billion in debt amid a rampant M&A spree that ended with its failed attempt to buy solar installer  Vivint Solar ( VSLR ) for an initial $2.2 billion. “Our decision to initiate a court-supervised restructuring was a difficult but important step to address out immediate liquidity needs,” Chatila said in a statement. Restructuring will allow SunEdison to become a “more streamlined and efficient operator” as it sheds non-core assets and takes advantage of its technological and intellectual assets, Chatila said. Meanwhile, SunEdison will continue ongoing projects and pay for products procured after the Chapter 11 filing. Employees will still receive a wage and benefits. SunEdison representatives wouldn’t comment on media inquiries, instead directing reporters to the company’s new restructuring website .

Einhorn Trims SunEdison Stake On Bankruptcy Rumors; Yieldco Sued

Activist investor David Einhorn cut his SunEdison ( SUNE ) stake by more than half, dropping below a critical 5% threshold, according to a late Monday filing that followed fresh reports of a looming SunEd bankruptcy. On Friday, Einhorn trimmed his SunEdison shares to 2.8% from 6.8% in January, meaning he is no longer a beneficial owner required to file a U.S. Securities and Exchange Commission filing when he sells or acquires shares. Einhorn-owned hedge fund Greenlight Capital also cut its SunEdison exposure to 1.6% from 4% in January. Three months ago, SunEd gave in to Greenlight demands, allowing former Greenlight executive Claire Gogel to have a role as independent director on the board. Together, Einhorn and Greenlight own just shy of 18 million shares of SunEdison stock. In early trading on the stock market today , SunEdison stock dropped nearly 5% and was trading below 33 cents. Shares of yieldcos TerraForm Power ( TERP ) and TerraForm Global ( GLBL ), on the other hand, rose 2.1% and 0.4%, respectively. SunEdison stock is down 99% since last July, when it hit a seven-year high before announcing its plan to acquire residential installer Vivint Solar ( VSLR ). In December, amid increasing reports of SunEd’s financial troubles, Vivint scrapped the sale. TerraForm Power stock climbed Tuesday despite a new  class action lawsuit  filed by New York law firm Bronstein, Gewirtz & Grossman, with the plaintiffs consisting of shareholders who bought stock between May 7, 2015, and March 15. According to the complaint, “the defendants made materially false and misleading statements regarding the TerraForm’s business, operational and compliance policies.” On March 16, TerraForm Power missed a second deadline to file its annual 10-K. SunEdison and TerraForm Global also missed their 10-K deadlines. Both TerraForms now face the potential of being delisted from the Nasdaq.