LDK Solar Co., Ltd. (NYSE: LDK), announced its intention to offer approximately $300 million aggregate principal amount of Senior Convertible Notes due 2013.
The notes are convertible into LDK Solar’s American depositary shares, cash or a combination of cash and American depositary shares. The interest rate, conversion price and other terms are to be determined by negotiations between LDK Solar and the initial purchasers of the notes.
LDK Solar said it expects to use the net proceeds of the offering to enter into prepaid forward contracts with one or more of the initial purchasers and/or their affiliates to repurchase approximately $150 million worth of its American depositary shares.
In addition, LDK Solar expects to use approximately 75% of the remaining net proceeds to fund the construction of a polysilicon manufacturing plant, approximately 20% of the remaining net proceeds to fund the capacity expansion of its wafer production facilities and 5% of the remaining net proceeds to fund other general corporate activities.
About LDK Solar
LDK Solar Co., Ltd. is a manufacturer of multicrystalline solar wafers, which are the principal raw material used to produce solar cells. LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. In addition, the company provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. LDK’s headquarters and manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi province in the People’s Republic of China. The Company’s office in the United States is located in Sunnyvale, California.
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