Evergreen Solar prices new issue of 10-year convertibles to yield 4%

By Rebecca Melvin

New York, Dec. 6 - Evergreen Solar Inc. has priced a new issue of 10-year convertible subordinated additional cash notes to yield 4%, some of which raises additional capital and some of which will used to exchange the company's existing 4% convertibles, according to a release.

The amount of new 4% notes to be issued in exchange for the company's existing 4% notes will be determined via a modified Dutch auction.

Evergreen is also issuing an equal amount of new 7.5% convertible senior notes due 2017 for its 13% notes being tendered.

The new issues are part of the solar company's comprehensive recapitalization plan announced late Monday. The recapitalization plan also includes implementing a 1-for-6 reverse stock split previously approved by stockholders and doubling the company's authorized shares of common stock to 240 million from 120 million.

Both the new 4% notes and the new 7.5% notes contain terms and features that should provide incentives to holders to convert their notes into shares of common stock, the company said in a release.

The conversion price for the new 4% notes will be $1.00, and the conversion price for the 7.5% notes will be 120% of the average of the daily volume-weighted average price of the company's stock for the five trading days ending on the second day prior to the offer expiration, subject to a floor of $0.75 and a cap of $1.25.

The conversion price for the existing 4% notes is $12.11 and for the existing 13% notes, the conversion price is $1.90.

Lazard Capital Markets LLC, which is the dealer manager for the exchange offers and bookrunner for the new money offering, couldn't be immediately reached for comment.

Evergreen plans to hold a special meeting of stockholders in early 2011 to get support for the plan.

Marlboro, Mass.-based Evergreen Solar makes solar power panels.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.