Boston, MA 12/13/2013 (wallstreetpr) – Sunedison Inc (NYSE:SUNE) made an announcement on December 11, Wednesday that it intends to offer $400 million net principal amount of convertible senior notes that are due 2018 and $400 million net principal amount of convertible senior notes that are due 2021, in a private placement, subject to market and other conditions. The notes will be offered only to qualified institutional buyers by the initial purchasers, subject to Rule 144A of the Securities Act of the year 1933. Also, the company wants to grant a 30-day option to buy $80 million (additional) net principal amount of each series of notes.
Usage of Proceeds
The proceeds of the offering is intended to be used by the company to fund the cost of convertible note, to repay all money borrowed under its $200 million loan with interest rate of 10.75% and to redeem all $550 million outstanding net principal amount of its 7.75% senior notes that are due 2019.
Notes
Subject to certain conditions, the notes can be converted into cash. They can also be converted into shares of common stock of the company subject to certain requirements of the shareholder. Likewise, they can be converted into combination of cash and common stock shares, at the opinion of the company. At the time of pricing of the offering, the other terms of the notes would be determined; that is, conversion price, conversion rate, interest rate and other factors.
Other Counterparties
The company intends to enter into convertible note transactions with counterparties that can include initial purchasers and their affiliates. The company also wants to enter into separate negotiated warrant transactions with counterparties.
Restrictions
The shares of common stock of the company that can be issued after the conversion of notes or the notes themselves will not be registered under any state securities law or Securities Act. They also cannot be sold for benefit or offered in the United States.
