SunEdison, Inc. announced last week the pricing of its offering of $400 million aggregate principal amount of 2.375% convertible senior notes due 2022 in a private placement. The notes will be offered to qualified institutional institutional investors.
The offering is expected to close on January 27, 2015, subject to customary closing conditions. The company has also granted the initial purchasers a 30-day option to purchase an additional $60 million aggregate principal amount of notes on the same terms and conditions.
The notes will bear interest at a rate of 2.375% per year, payable semiannually in arrears on April 15 and October 15 of each year.
The company estimates that the net proceeds from this offering will be approximately $389.45 million, after deducting the initial purchasers' discount and estimated offering expenses
The company intends to use the net proceeds from this offering (i) to fund a portion of the consideration for the company's acquisition of First Wind Holdings, LLC and (ii) approximately $119.1 million to repay all or a portion of indebtedness incurred to purchase 1.6 GW of production tax credit qualified turbines.
The company intends to use the remaining net proceeds to (i) fund working capital, accelerate growth of the business and for other general corporate purposes, and (ii) fund the cost of the capped call transactions described below.