SunEdison Reaches Deal to Extinguish Debt, Takes Stake in Dominion

   By Anne Steele 
 

SunEdison Inc. said Wednesday that a subsidiary would extinguish $336 million in exchangeable notes, with holders of the debt getting interest in renewable energy assets under development and shares of TerraForm Power Inc., one of the renewable energy development company's two yieldcos, in exchange.

Shares of SunEdison, which tend to be volatile, rose 5.2% in premarket trading.

SunEdison's energy financing vehicles, known as yieldcos, raise money from public investors to buy power projects from developers, then sell power to utilities under long-term contracts.

Also Wednesday, the company said it and Terra Nova Renewable Partners--a partnership formed between SunEdison and institutional investors--have acquired a 33% stake in a 336 megawatt DC portfolio of operating solar power plants from Dominion Resources Inc. for $180 million plus a working capital adjustment.

The aquisition marks the first of two parts of a deal announced in September for 24 solar portfolio projects, with a total capacity of 567 megawatts DC located in Indiana, Georgia, Connecticut, California, Tennessee and Utah. This first phase includes 15 projects that generate 336 megawatts DC. The second phase is expected to close in early 2016 for about $120 million, according to Dominion.

Write to Anne Steele at [e-mail].

(END) Dow Jones Newswires

December 30, 2015 08:37 ET (13:37 GMT)

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