SunEdison to price $800 million of convertible notes in two tranches

By Rebecca Melvin

New York, Dec. 11 - SunEdison Inc. plans to price $800 million of convertible senior notes in two tranches, including $400 million of five-year convertibles and $400 million of seven-year convertibles, in an offering to private investors under Rule 144A, according to a news release.

There is an over-allotment option for up to an additional $80 million of notes for each tranche.

Details on timing and pricing were not immediately available.

Proceeds, together with proceeds from warrant transactions and cash on hand, will be used to repay all $550 million outstanding of SunEdison's 7.75% senior notes due 2019, to repay a $200 million second-lien term loan and to fund the cost of convertible note hedge transactions.

The notes will mature on Oct. 1, 2018 and Jan. 1, 2021, respectively.

In connection with the new bonds, the company plans to enter into convertible note hedge and warrant transactions, which will boost the premium from the issuer's perspective.

St. Peters, Mo.-based SunEdison develops, makes and sells silicon wafers.

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