NEW YORK (TheStreet) -- SunEdison (SUNE) was rising 3.56% to $21.84 at 10:36 a.m. on Friday after the company announced a fund with Nationwide Mutual, Sol Systems and National Bank of Arizona for a 13.4 megawatt solar electricity portfolio.
The four entities announced a $50 million fund to construct the portfolio for the State of California prison and hospital systems. The projects should create local construction jobs to stimulate the local economy and tax base. Sol Systems advised Nationwide Mutual Insurance on the acquisition of the equity in the deal, while SunEdison secured long-term debt for the projects from the National Bank of Arizona. This is the first time the entities have worked together on a solar project.
"Financing is a critical element of any solar project, and having partners who are willing to innovate with us is critical to our growth," said SunEdison Capital president Carlos Domenech in the company's statement. "We will continue to innovate to help SunEdison's shareholders and finance partners extract more value from our projects and create new opportunities to finance and build distributed generation solar power plants."
TheStreet Ratings team rates SUNEDISON INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNEDISON INC (SUNE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."