SunEdison (NYSE: SUNE) announced on Wednesday that it planed to extinguish $336 million in exchangeable note. Shares of SunEdison were up 5.2% in premarket trading.
These $336 million exchangeable notes will be due in 2020. The debt holder will get shares of SunEdison’s yieldco TerraForm Power and receive interest from renewable energy assets under development.
"We are very pleased to reach an agreement with the holders of the Exchangeable Notes to extinguish the debt." Brian Wuebbels, SunEdison's CFO, said in a statement. "We believe this was a mutually beneficial solution to deleverage our balance sheet by selling our under development assets as well as the Company's shares of TerraForm Power."
Separately, SunEdison reached a deal to acquired a 33% stake of a solar power plants portfolio from Dominion Resources Inc. for about $180 million. This is the first part of a deal that the company announced in September. The second part is expected to happen in early 2016.
SunEdison stock price has fallen more than 70% from its 52-week highs this year since it announced the acquisition with Vivint Solar. The major source of capital to fund the acquisition comes from SunEdison’s two yieldcos. But the IPO of the company’s second yieldco was price far below expectations. What’s worse, second-quarter earning report shows that SunEdison had a $11.7 billion in debt. Investors began to concern about the liquidity issues and the stock price slumped. This deal may be a good sigh that the company plans to deleverage its balance sheet.