Tag Archives: terp

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.

SolarCity Burns On ‘Alarmingly Weak’ Q1; Vivint Joins SunEd Case

IBD’s 20-company Energy-Solar industry group hit a three-year low Tuesday after No. 1 residential installer SolarCity ( SCTY ) cut its 2016 guidance on slow Q1 bookings and rival Vivint Solar ( VSLR ) missed quarterly views on growing losses. Late Monday, Vivint Solar said it would participate in the bankruptcy case against ex-acquirer SunEdison “to maximize the recovery from claims against SunEdison.” Vivint scrapped the sale four months before SunEd filed for bankruptcy, an expected move. Midday on the stock market today , SolarCity stock crashed 25.2%, leading an industrywide 5.5% dip. Shares of top rivals Sunrun ( RUN ) and Vivint Solar trailed, down 7.4% and 6.7%, respectively. Yieldco TerraForm Power ( TERP ) stock slid 2.6%. SolarCity Q1 Booking Topple 33% For Q1, SolarCity reported $123 million in sales, up 82% vs. the year-earlier quarter, and topping the consensus for $108.4 million. But losses per-share minus items deepened to $2.56 vs. $1.53 in the year-ago period and analyst views for $2.31. Installations grew 40% year over year to 214 megawatts, topping guidance for 180 MW, but 160 MW in bookings fell 33% vs. the year-earlier quarter, SolarCity said Monday. For Q2, SolarCity expects 185 MW in installations, down 2% year over year. Current-quarter losses guidance for $2.70-$2.80 per-share ex items missed the consensus for $2.13 and would widen from $1.61 in the year-earlier quarter. SolarCity also cut its 2016 guidance to a range of 1 gigawatt to 1.1 GW in installations vs. earlier views for 1.25 GW, citing slow Q1 bookings related to Nevada’s decision to cut net-metering payments to solar customers. The Nevada decision spooked potential customers, SolarCity said. Vivint Solar Bookings Growth Tops SolarCity Credit Suisse analyst Patrick Jobin cut his price target on SolarCity stock to 38 from 62, but reiterated an outperform rating. SolarCity’s “alarmingly weak bookings (will) derail 40% growth outlook,” he wrote in a research report. “SolarCity seems to be faced with reproving the merits of their business model each quarter — facing either operational, regulatory, capital or competitive challenges — in addition to painfully, yet gradually, transitioning the strategy more toward value than growth,” he wrote. Jobin lowered his 2016 installation view to 16% MW growth. Also late Monday, Vivint Solar reported $16.6 million in Q1 sales on a 65-cent per-share loss minus items, missing Wall Street views for $17.6 million and a 61-cent loss. Sales grew 93% year over year, but losses deepened from 61 cents in the year-ago quarter. But, Vivint’s Q1 bookings grew 33% year over year to 66 MW, leading 19% growth in installations to 55 MW.

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 .