Baird analyst Ben Kallo reiterating a Neutral rating and $35 price target on SunEdison (NYSE: SUNE) after the company announced a construction warehouse facility providing $1B of liquidity, which will help SUNE complete projects in 2016. The facility will address liquidity concerns.

Kallo commented, "This facility will be helpful in executing on SUNE's development of projects during 2016. The warehouse facility consists of $300M of equity committed by West Street Infrastructure Partners III (WSIP) of Goldman Sachs (GS; Not Covered) and $700M of debt led by Bank of America (BAC; Neutral), Morgan Stanley (MS; Not Covered), and Deutsche Bank (DB; Not Covered). The debt includes a five-year $500M term loan, and a four-year $200M revolving credit facility. Additionally, SUNE has the option to increase the warehouse facility by up to $1B (to ~$2B total). The warehouse is expected to be formed by October 31, 2015."

SUNE also announced the offering of $500M of perpetual convertible preferred stock, which provides additional liquidity but makes the capital structure more complex.

For an analyst ratings summary and ratings history on SunEdison click here. For more ratings news on SunEdison click here.

Shares of SunEdison closed at $14.68 yesterday.

Analyst Comments

Needham & Company Raises Price Target on SunEdison (SUNE) Following Recent Financing August 19, 2015 6:43 AM New Warehouse Facility for SunEdison (SUNE) Should Address Liquidity Concerns - CowenAugust 17, 2015 5:56 PM SunEdison (SUNE) to File to Offer $500M of Perpetual Convertible Preferred StockAugust 17, 2015 5:35 PM SunEdison Announces Proposed Offering Of $500 Million Of Perpetual Convertible Preferred StockAugust 17, 2015 5:33 PM SunEdison (SUNE) Announce Formation of $1B Construction and Operating Asset FacilityAugust 17, 2015 4:09 PM SunEdison and Investment Funds Managed by Goldman Sachs Announce Formation of $1 Billion Construction and Operating Asset FacilityAugust 17, 2015 4:08 PM