Solar technology company,
) recently closed a non-recourse debt financing agreement with
Deutsche Bank AG
). Through this deal, SunEdison is expected to expand its reach
in the UK solar market and create employment opportunities.
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Per the agreement, the proceeds would be used to finance the
construction of a 56 megawatt (MW) utility-scale solar portfolio
in the UK. Construction of the four constituent projects is
expected to get underway by the end of Mar 2014.
Moreover, this debt financing agreement would also help in
accelerating growth of the company's project portfolio. Also,
this financing would increase the confidence of prospective
SunEdison ended the fourth quarter with cash, cash equivalents
and restricted cash of $643.6 million compared with $757.4
million in the previous quarter. Long-term debt (excluding
current portion) stood at $875.8 million. SunEdison used $413.3
million cash in operations. During the quarter, SunEdison also
completed 333 megawatts (MW) of solar energy projects while
retaining 127 MW on the balance sheet worth $257 million.
Apart from this, SunEdison announced that the portfolios will be
acquired by Foresight Solar Fund Limited through a Share Purchase
Agreement (SPA). These projects are located in Swindon,
Wiltshire, North Devon and on the Essex/Suffolk border.
The United Kingdom targets to deploy more than 20 gigawatts (GW)
of solar energy by 2020. SunEdison is expected to benefit from
the rise in demand for solar energy and the spinning-off of its
semiconductor business, which would further enable it to
concentrate on its core competencies. Moreover, its recent
partnerships and cost reduction initiatives are expected to
Nonetheless, the pricing environment remains a concern for the
company. Competition from
First Solar Inc.
) also remains a headwind.
Currently, SunEdison has a Zacks Rank #4 (Sell).