NEW YORK (TheStreet) -- SunEdison (SUNE) stock is climbing by 2.16% to $2.61 in mid-afternoon trading on Friday, as the renewable energy company plans to sell 2.1 gigawatts of wind and solar assets that it previously purchased back to the prior owners, Bloomberg reports.
The transaction is expected to extinguish $336 million in debt for SunEdison, Bloomberg adds. The company lost 85% of its market value and accumulated $11.7 billion in debt this past year as part of its push to become the world's largest clean-energy developer.
The deal "was a mutually beneficial solution to deleverage our balance sheet," SunEdison spokesman Ben Harborne told Bloomberg in an e-mailed statement.
The transaction "looks odd," but SunEdison's high debt load and the unfavorable market conditions leave the company with little choice but to sell recently acquired assets, Angelo Zino, an analyst at S&P Capital IQ, told Bloomberg.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
SunEdison's weaknesses include its generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: SUNE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.SUNE data by YCharts