Friday, May 13, 2016

"SunEdison Yieldco Hit With Default Notice Over Late Financials" (GLBL)

Terraform Global is trading at $2.50 down 16 cents in late pre-market action giving it an indicated dividend yield of 42.80%.
That divi is probably not secure.

From Bloomberg, May 12:
A unit of TerraForm Global Inc. has 90 days to issue its delinquent annual report or it could face demands to pay off hundreds of millions in debt six years early, partly because bankrupt parent SunEdison Inc. hasn’t filed its own financial statement.

Holders of bonds issued by TerraForm Global Operating LLC sent a notice of default on the yieldco’s 9.75 percent senior notes due in 2022, according to a statement Wednesday from their law firm, Willkie Farr & Gallagher. The group represents more than 25 percent of aggregate principal of the notes, according to the firm, which said failure to remedy the problem in 90 days would constitute an “event of default.”

If that happens, bondholders could demand payment in full, said Julia Winters, a bankruptcy analyst at Bloomberg Intelligence. There’s $760.4 million outstanding on the issue, according to data compiled by Bloomberg.

“The notice is starting the clock,” she said. “It can be a way for the lenders to open a dialogue for how the default will be cured. They have the power to grant a forbearance.”

‘Remain Committed’
The bondholders “remain committed to continuing an open dialogue and working productively with the company toward a resolution in the interests of all stakeholders,” according to Willkie’s statement.

A representative for Bethesda, Maryland-based TerraForm Global didn’t immediately respond to requests for comment on the notice....MORE