LDK remedies payments relating to 10% notes' indenture with stock sale

By Devika Patel

Knoxville, Tenn., Sept. 19 - LDK Solar Co. Ltd. said it conducted a private placement of stock as a remedy for exceeding the restricted payments allowed under its RMB 1.2 billion of 10% senior notes due 2014.

The payments were incurred under a share repurchase program in which the company repurchased American Depositary Shares between July 11 and Aug. 26. The $110 million paid under the program exceeded the amount permitted under the notes' indenture by $12.8 million.

In the $25.79 million private placement, the company sold 4,374,315 ordinary shares at $5.8958 per share to controlling shareholder LDK New Energy Holding Ltd. Proceeds will be used for corporate purposes.

LDK Solar is a solar wafer producer based in Xinyu City, China.

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