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SunEdison Bankruptcy Winners And Losers


SunEdison files Chapter 11.

Free Game of Thrones tomorrow.

Get $5k per dirty VW.

Welcome to the Chapter 11 issue of M&A Daily



(NYSE:SUNE) bankruptcy filing helps its yieldcos but hits Vivint (NYSE:VSLR). The filing impacts Vivint's litigation over SunEdison's failure to meet obligations under their merger agreement. The impact on TerraForm Power (NASDAQ:TERP) and TerraForm Global (NASDAQ:GLBL) could be better. While the yieldcos were not created with a specific plan for operating independently, it is reasonably likely that they will avoid bankruptcy and that their equity holders will be able to capture the value of their existing projects. According to the yieldcos, they "do not rely substantially on SunEdison for funding or liquidity." One plan for the TerraForms would be to contract with their utility customers for management of specific projects. For background on this filing:

Time Warner Cable

The election deadline for Time Warner Cable (NYSE:TWC) holders to elect the form of consideration they want in exchange for their shares in the Time Warner Cable-Charter (NASDAQ:CHTR) deal is May 12. The $5.82 net arbitrage spread offers a 14% IRR if the deal closes midyear.

Baker Hughes

The European Union is set to submit a Statement of Objections to the Halliburton (NYSE:HAL) acquisition of Baker Hughes (NYSE:BHI). Halliburton requested additional time to submit information to the Australian Competition and Consumer Commission. The net arbitrage spread is $17.08.

Virgin America

Virgin America (NASDAQ:VA) filed HSR for its acquisition by Alaska Air (NYSE:ALK).

Johnson Controls

Following its review of the U.S. Treasury's April 4 tax announcement, Johnson Controls (NYSE:JCI)...