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Fears That Sunedison Missed A Preferred Dividend Aren't 'Material,' Avondale's Morosi Says

Fears That Sunedison Missed A Preferred Dividend Aren't 'Material,' Avondale's Morosi Says

Sunedison Inc (NYSE: SUNE) shares largely bucked off commentary from Axiom's Gordon Johnson on Tuesday highlighting the potentially "scary" scenario the company would be in if it misses a coming preferred dividend payment.

According to Johnson, Sunedison was due to announce its cash dividend payment on Series A Preferred Stock last Friday, but stayed quiet.

"[W]ith this announcement lacking, some are assuming SUNE may have cash issues much more pronounced than already feared," he added.

Speaking to Benzinga, Avondale Partners' Michael Morosi said he didn't think fears of a missed payment are "material" to shareholders at present. "The company has not missed a payment yet. Their next preferred dividend payment is due March 1st," he wrote.

"Their previous dividend was declared a couple weeks before payment was due, and they have yet to declare this payment."

Sunedison is able to make this payment in cash or stock, giving it the option to avoid impairing its liquidity by issuing stock. An all-stock payment would equate to 6.4 million shares, Morosi said, making it 1.6 percent dilutive.

Sunedison shares are up 9.2 percent on Wednesday morning, but are still down 46 percent since Johnson's comments on January 12 that questioned the company's ability to survive 2016.

Latest Ratings for SUNE

Mar 2016Stifel NicolausTerminatesHold
Mar 2016Axiom CapitalMaintainsSell
Mar 2016Avondale PartnersDowngradesMarket OutperformMarket Perform

View More Analyst Ratings for SUNE
View the Latest Analyst Ratings


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