A little emphasized $410 million margin loan SunEdison took out with Deutsche Bank in January encapsulates the tenuous financial foundation that stood behind its growth plans. SunEdison’s margin deal was a piece of the financing package for its $2.4 billion purchase of First Wind, which was very well received by investors. It used TerraForm Power shares — trading above $30 at the time – as a form of collateral but the structure left little room for error. Covenants on the deal forced SunEdison to maintain a loan-to-value of at least 50%, thus when SunEdison and its yieldco shares began falling in late July it prompted large collateral calls that surprised Wall Street and raised questions about management’s transparency. Read the entire article