Morning Commentary: SunEdison files Chapter 11; some SunEdison bonds better

By Rebecca Melvin

New York, April 21 – SunEdison Inc. said it has filed for restructuring under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

The filing was announced early Thursday and was expected by the market. Last week the company confirmed that it had entered in confidentiality agreements with certain lenders regarding debtor-in-possession financing. It confirmed a $300 million DIP on Thursday.

SunEdison’s 2.75% convertible senior notes due 2021 traded up at 4.875 and 5.6 in the early going, from 4.50 and 4.75 on Wednesday.

SunEdison’s 2.375% convertibles due 2022 had not traded on Thursday and were last at 4.125.

Shares are about 33 cents each.

SunEdison’s other convertible issues include: 5% convertible senior secured notes due 2018. 6.75% perpetual convertible preferreds, 2.625% convertible senior notes due 2023, 3.375% convertible senior notes due 2025, 0.25% convertible senior notes due 2020 and 2% convertible senior notes due 2018.

The Maryland Heights, Mo., operator of renewable power plants said it made the bankruptcy filing in order to address its “immediate liquidity issues.” It listed assets of $20.7 billion and liabilities of $16.1 billion in its filing.

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