SunEdison Inc.’s yieldco’s TerraForm Power Inc. and TerraForm Global arranged for more time to file their financial reports for 2015, thus helping them avoid a potential technical default on their credit facilities. The agreement was approved by lenders on Tuesday.
TerraForm Power Inc. has until 28 May 2016, to file its annual financial results whereas TerraForm Global Inc. could get an extension period of almost 10 months, in exchange for reducing the size of its own revolving credit line to $350m from $485m.
As per an SEC-filing, TerraForm Power would also delay the release of its 1Q’16 report as it had identified “material weaknesses in internal controls over financial reporting,” including the valuation of costs of projects acquired from SunEdison and processing accounts payable and general and administrative expenses.
TerraForm Global did not provide a specific new deadline in the filing but it had until either 30 March 2017, or 10 business days before “failure to deliver such financial statements would constitute an event of default” for another debt, its senior notes due 2022, whichever came first.