Canadian Solar gets tenders for 94% of 6% notes in conversion offer

By Jennifer Chiou

New York, June 25 - Canadian Solar Inc. accepted for conversion all $70.95 million, or about 94%, of its $75 million of 6% convertible senior unsecured notes due Dec. 15, 2017 at the deadline of its conversion offer.

As a result, the company said it will issue 3,803,344 common shares and pay a cash amount for the fractional shares.

The company began the conversion offer on May 27 at an increased conversion rate for its 6% convertibles. The offer ended at 5 p.m. ET on June 24.

On June 17, the company said it increased its conversion rate for the notes.

The conversion ratio was 53.6061 common shares per $1,000 principal amount of the notes, up from 50.6073.

Canadian Solar said it was looking to reduce its ongoing fixed-interest obligations and improve the trading liquidity of its common shares by increasing the number of available outstanding shares.

When the notes were issued, the conversion price was set at $19.76.

For each $1,000 principal amount, in addition to the common shares, holders converting their securities will also receive $117 in the form of additional common shares at the volume-weighted average price of Canadian Solar's common shares for the 10 trading days from June 3 to and including June 16.

Georgeson Inc. was the information agent (800 223-2064). Piper Jaffray & Co. (877 371-5212) was the financial adviser.

Canadian Solar is a Markham, Ont.-based solar power components producer. It conducts all of its manufacturing operations in China.

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