SunEdison plans $500 million perpetual convertible preferreds to yield 6.75%-7.25%, up 15%-20%

By Rebecca Melvin

New York, Aug. 17 – SunEdison Inc. launched an offering of $500 million of perpetual preferred stock after the market close on Monday that was expected to price before the market open Tuesday at a 6.75% to 7.25% dividend and 15% to 20% initial conversion premium, according to a syndicate source.

The overnight deal is registered. The stock is non-callable for five years, and then provisionally callable if the company’s shares exceed 130% of the conversion price.

The company plans to use proceeds for general corporate purposes including funding working capital and growth initiatives.

Joint bookrunners are Goldman Sachs & Co., BofA Merrill Lynch, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Macquarie Capital and J.P. Morgan Securities LLC.

SunEdison was last in the convertibles market with a deal in May when it priced a dual tranche offering of convertible bonds for $900 million.

St. Peters, Mo.-based SunEdison makes solar technology and develops, finances, installs and operates distributed solar power plants.

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