Sunedison Inc (NYSE:SUNE)‘s stock is trading 5% in green on Wednesday after the company said that managed to syndicate a 7 year term loan facility of TerraForm Private Warehous worth $280 million. The company said that the offering was oversubscribed and was placed with a diverse group of institutional investors. Moreover, the term loan sports an interest rate of LIBOR plus 4%. In addition, TerraForm Power Inc (NASDAQ:TERP)’s stock advanced by more than 7% on the back of the news.
TerraForm Private Warehouse holds Sunedison’s 521 Megawatts of operating assets acquired from Atlantic Power for a maximum period of seven years. The assets with an average contracted life of 18 years and provide investment grade utilities with an A3 weighted average credit rating, Sunedison said in a statement. It added that TerraForm Power has an exclusive call right over the assets and will add them to its portfolio in the future.
Today’s appreciation of the Sunedison Inc (NYSE:SUNE)’s stock managed to slightly offset the decline witnessed in the last weeks. Nevertheless, the stock is still down by 32% year-to-date, mainly on the back of weak financial results for the second quarter disclosed on Friday. As you probably remember, the company’s net loss missed the estimate and fell further to $0.89 per share from $0.16 a year earlier. Even though the company has embarked on an expansion spree to increase its market share and expand into the new markets, which affected the bottom line in its financial statement, the market focused on the net loss itself and sent the stock down. The stock’s move surprised analysts, most of whom see a long term potential for the company and have bullish ratings on its stock.
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