Energy Conversion Devices, Inc. (ECD Ovonics) (NASDAQ:ENER) has priced its equity offering of 7,000,000 shares of common stock, including 6,616,928 shares to be sold by the company and 383,072 shares to be sold by certain directors and officers, at a price of $49.00 per share under an effective shelf registration statement previously filed with the Securities and Exchange Commission.
The offering was increased by 850,000 shares over the proposed offering announced February 15, 2006.
The Company will receive gross proceeds of approximately $324.2 million, before underwriting discounts and commissions and expenses payable by the Company, from the sale of the 6,616,928 shares of common stock.
In connection with this offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 1,050,000 shares of its common stock to cover over-allotments, if any. The Company expects the issuance and delivery of the shares to occur on March 7, 2006.
The Company intends to use in the near term approximately $150 million of the net proceeds from this offering to expand the solar module production capacity of its wholly owned subsidiary, United Solar Ovonic, through the construction of a third manufacturing facility with an annual capacity of at least 50 megawatts.
The Company intends to use the balance of the net proceeds from this offering for future capacity expansion of its thin-film solar cell business and for other general corporate purposes.
UBS Investment Bank is acting as sole book-running manager for the offering. Cowen & Company, First Albany Capital, Piper Jaffray, Jefferies & Company, Merriman Curhan Ford & Co. and Tejas Securities Group, Inc. are acting as co-managers for the offering.
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