) has been trending up post the redemption of its remaining $550
million 7.75% Senior Notes (maturing in 2019), and $200 million
of its term loan bearing an interest of 10.75%.
The company also raised its principal amount of $600 million
(previously $500 million) with an interest rate of 2.0%
convertible senior notes maturing on Oct 1, 2018 and the
remaining $600 million aggregate principal amount with an
interest rate of 2.75% convertible senior notes, set to mature in
Jan 1, 2021.
Through this deal, SunEdison intends to strengthen its balance
sheet and also intends to minimize its annual interest expense.
Further, this would also result in net savings of approximately
$35.0 million per year. Notably, during the last reported
quarter, interest expense was $45.2 million, up from $34.6
million compared to the last quarter.
SunEdison broke even in the third quarter of 2013, down 30 cents
from the year-ago period. SunEdison ended the third quarter with
cash balance of $757.4 million, up from $482.1 million in the
previous quarter, primarily due to share issuance coupled with
solar project financing and working capital management. Long-term
debt was $756.1 million compared with $755.9 million in the
SunEdison issued a cautious guidance for the fourth quarter.
Moreover, the company expects a moderate rise in its operating
expenses, going forward. Price erosion is also a concern for the
Nonetheless, we believe that SunEdison's recent tie-up with
Brazil's Petrobras to build one of the largest solar photovoltaic
power plants is a positive. This venture will help SunEdison to
tap the Brazilian solar market and expand geographically.
However, competition from
First Solar Inc.
) is a concern.
Currently, SunEdison has a Zacks Rank #3 (Hold). Investors may
also consider a better ranked technology stock,
), which carries a Zacks Rank #2 (Buy).
FIRST SOLAR INC (FSLR): Free Stock Analysis
SANDISK CORP (SNDK): Free Stock Analysis
SUNPOWER CORP-A (SPWR): Free Stock Analysis
SUNEDISON INC (SUNE): Free Stock Analysis
To read this article on Zacks.com click here.