SunEdison, a solar manufacturing company, fell 35% on Thursday after the company announced that it intends to raise money and restructure its debt in order to pay back $738 million worth of debt.
Now, you may be thinking, debt reduction, thats a good thing.
Well, like many things in life, the devil is in the details.
In order to raise this money SunEdison will be restructuring old loans at a much higher rate and issuing a bunch of stock. Investors worst fear about the stock is real. SunEdison is cash poor.
If it wasnt, the company wouldnt have to raise money on terms that sounds like this [emphasis ours]:
The Second Lien Facilities will be comprised of $500 million of A1 loans, and $225 million of A2 loans, e…
Read the full article at: http://www.businessinsider.com/sunedison-stock-falls-on-debt-restructuring-2016-1