Suntech Power Holdings Co., Ltd. (NYSE: STP) announced that it intends to offer an aggregate of US$300 million convertible senior notes due 2012, in a private offering to qualified institutional buyers.
In some circumstances, the notes will be convertible into,at Suntech’s election, cash, American depositary shares (“ADSs”) representing Suntech’s ordinary shares or a combination of cash and ADSs. The interest rate, conversion price and other terms of the notes will be determined at the time of pricing of the offering.
Suntech currently expects to use the net proceeds from the offering of the notes for the following purposes: approximately US$100 million to expand its manufacturing lines for the production of PV cells and modules and thin film modules and to enhance its research and development efforts; approximately US$50 million to purchase or prepay for raw materials; US$100 million to repay its one year, US$100 million-equivalent bridge loan it obtained in connection with its acquisition of MSK Corporation; and up to US$50 million for other general corporate purposes.
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