U.S. clean energy developer SunEdison has revealed in a SEC filing that it is in talks to secure up to $650 million in financing via a second lien credit facility, a portion of which will be used to repay its existing second lien credit facility.
The potential new credit facility may include a significant amount of outstanding stock, according to the filing, which may be used to pay off some of the outstanding credit.
Following the announcement of the funding talks, shares in SunEdison climbed by almost 10% to $5.92 at the close of the holiday-shortened trading session. This slight jump follows weeks of plunging share price as investors have questioned the companys spending and acquisition strategy, which included earlier this year the purchase of Vivint Solar.
Following the announcement earlier this month that the U.S. Investment Tax Credit (ITC) is to be maintained at 30% until at least 2021, SunEdisons shares along with many other leading solar companies operating in the U.S. jumped by around 25% in a single day, before sliding last week as questions concerning its management shakeup and acquisitions abounded.