By Rebecca Melvin
New York, April 21 - Evergreen Solar Inc. priced $165 million of five-year convertible senior notes Wednesday ahead of the market open to yield 13% with an initial conversion premium of 52%.
The notes will be convertible into shares of Evergreen Solar's common stock at an initial conversion rate of 525.2462 shares of common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $1.90 per share.
Holders have the right to require Evergreen to purchase their notes for cash on April 15, 2013.
The Rule 144A offering is being sold via Piper Jaffray & Co.
Proceeds will be used to purchase $124.5 million principal amount of the company's outstanding 4% convertible senior notes due 2013 - initially priced in June 2008 - concurrently with the closing of the offering.
The remainder of the proceeds is for general corporate purposes, for working capital and for capital expenditures to fund expansion of its manufacturing facility in Wuhan, China.
Marlboro, Mass.-based Evergreen Solar makes solar power panels.
| Issuer: | Evergreen Solar Inc.
|
| Issue: | Convertible senior secured notes
|
| Amount: | $165 million
|
| Maturity: | April 15, 2015
|
| Bookrunner: | Piper Jaffray & Co.
|
| Coupon: | 13%
|
| Price: | Par, $1,000
|
| Yield: | 13%
|
| Conversion premium: | 52%
|
| Conversion price: | $1.90
|
| Conversion ratio: | 525.2462 shares
|
| Call protection: | Non-callable for life
|
| Puts: | Yes, for cash on April 15, 2013
|
| Price talk: | 13%, up 52%
|
| Pricing date: | April 21
|
| Settlement date: | April 26
|
| Distribution: | Rule 144A
|
| Stock reference price: | $1.25
|
| Stock listing: | Nasdaq: ESLR
|
| Market capitalization: | $251.5 billion
|
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