Suntech Power Holdings Co., Ltd. (NYSE: STP) announced today that it intends to offer $425 million convertible senior notes due 2013, 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 intends to grant to the initial purchasers a 30-day option to purchase up to an additional $75 million of the notes to cover over-allotments, if any.
Suntech expects to use approximately $300 million for procuring upstream supplies and the balance for production capacity expansion and new technology commercialization.
Suntech will use any additional net proceeds for general corporate purposes and for potential acquisitions of, or investments in, businesses and technologies that fit its expansion strategies.
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