Back to top

Analyst Blog

Solar technology company, SunEdison Inc (SUNE - Analyst Report) recently closed a non-recourse debt financing agreement with Deutsche Bank AG (DB - Analyst Report). Through this deal, SunEdison is expected to expand its reach in the UK solar market and create employment opportunities.

Per the agreement, the proceeds would be used to finance the construction of a 56 megawatt (MW) utility-scale solar portfolio in the UK. Construction of the four constituent projects is expected to get underway by the end of Mar 2014.

Moreover, this debt financing agreement would also help in accelerating growth of the company’s project portfolio. Also, this financing would increase the confidence of prospective project partners.

SunEdison ended the fourth quarter with cash, cash equivalents and restricted cash of $643.6 million compared with $757.4 million in the previous quarter. Long-term debt (excluding current portion) stood at $875.8 million. SunEdison used $413.3 million cash in operations. During the quarter, SunEdison also completed 333 megawatts (MW) of solar energy projects while retaining 127 MW on the balance sheet worth $257 million.
 
Apart from this, SunEdison announced that the portfolios will be acquired by Foresight Solar Fund Limited through a Share Purchase Agreement (SPA). These projects are located in Swindon, Wiltshire, North Devon and on the Essex/Suffolk border.

The United Kingdom targets to deploy more than 20 gigawatts (GW) of solar energy by 2020. SunEdison is expected to benefit from the rise in demand for solar energy and the spinning-off of its semiconductor business, which would further enable it to concentrate on its core competencies. Moreover, its recent partnerships and cost reduction initiatives are expected to expand margins.

Nonetheless, the pricing environment remains a concern for the company. Competition from SunPower Corp. (SPWR - Analyst Report) and First Solar Inc. (FSLR - Analyst Report) also remains a headwind.

Currently, SunEdison has a Zacks Rank #4 (Sell).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%