RBC Capital affirms SunEdison (NYSE: SUNE) at Outperform with a price target of $24 (recently lowered from a prior target of $36) following pricing of the company's 650,000 6.75% Series A Perpetual Convertible Preferred Stock, which was $1,000 per share.

Analyst Mahesh Sanganeria commented, We think the offering will allow SunEdison to significantly expand its warehouse facility so that the company can retain more projects in 2016 instead of selling to third parties. We view the offering as an indication of management’s commitment to the YieldCo business model. While the offering will provide enough liquidity, we think the cost of capital can be high given the low conversion price. The offering will create dilution for shareholders.

Analyst Comments Equity Offerings

Needham & Company Raises Price Target on SunEdison (SUNE) Following Recent Financing August 19, 2015 6:43 AM SunEdison (SUNE) Hits Session Lows, Down 3.5%August 18, 2015 10:50 AM SunEdison (SUNE) Prices 650k Series A Perpertual Conv. Preferred Stock OfferingAugust 18, 2015 9:11 AM SunEdison Announces Pricing Of $650 Million Of Perpetual Convertible Preferred StockAugust 18, 2015 9:10 AM 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