Yingli takes $80 million loan; Timminco to raise C$25 million; Canada Zinc, Sensio in unit deals

By Kenneth Lim

Boston, Jan. 26 - Yingli Green Energy Holding Co. Ltd. negotiated an $80 million loan facility through a subsidiary to expand its production capacity and for general purposes.

Timminco Ltd. plans to sell up to C$25 million of its common stock to strengthen its balance sheet.

Canada Zinc Metals Corp. placed C$4.89 million of stock and warrant units to a new investor and raised capital for exploration work.

And Sensio Technologies Inc. is offering C$1 million to C$1.5 million of stock and warrant units in a private placement as the company seeks to step up commercialization of its products.

Yingli arranges $80 million loan

Yingli Green Energy's private subsidiary, Yingli Energy (China) Co. Ltd., negotiated an $80 million three-year 12% loan facility with ADM Capital.

The loan will be available for drawdown in one lump sum at any time up to 85 days from the date of the agreement. It will be guaranteed by the parent company.

The lender will also receive up to 6.6 million three-year warrants for common stock of Yingli Green Energy. The warrants will have a strike price based on the 20-day volume weighted average closing price of the underlying stock prior to the issue of the warrants.

Yingli Green Energy common stock (NYSE: YGE) closed at $5.27 on Monday, lower by 6.9% or $0.34. The company's market capitalization is $668.9 million.

Proceeds will be used for production capacity expansion and general corporate use.

Yingli Green Energy is a Baoding, China-based photovoltaic product manufacturer.

ADM Capital is a fund by Asia Debt Management Hong Kong Ltd.

"This loan facility will provide us with valuable support in these times of continued turmoil in the global financial markets and is expected to further strengthen our ability to complete our expansion plan as scheduled," Yingli Green Energy chief financial officer Zongwei Li said in a statement.

"We believe this new financing demonstrates ADM Capital's confidence in our leading position in the industry and the growth potential of our fully integrated business model."

ADM Capital investment committee member Grace Tan also commented: "ADM Capital has a long track record of investing in China and the Asian region. We are very excited at the prospects of our partnership with Yingli Green Energy and the outlook for its solar energy business."

Timminco to raise C$25 million

Timminco plans to raise up to C$25 million through a private stock placement.

The company is offering 7.04 million common shares at C$3.55 apiece. Timminco common stock (TSX: TIM) closed Monday at C$3.85, lower by 3.02% or C$0.12. The company has a market capitalization of C$401.2 million.

AMG Advanced Metallurgical Group NV, Timminco's controlling shareholder, has agreed to subscribe for at least $12.6 million, or 3.55 million shares, of the offering. It will also buy up any of the remaining shares that are not subscribed for by other investors.

Proceeds will be used for general corporate purposes.

Toronto-based Timminco is focused on producing and marketing alloy magnesium, silicon metal and specialty ferrosilicon, calcium and strontium alloys.

"While we believe that based on our current cash position, existing credit facilities and expected cash flow from operations Timminco is adequately capitalized to finance the remainder of our capital expansion costs at our purification facilities in Becancour, Quebec, we are completing this financing as a prudent contingency measure in light of the impact that the current global economic conditions are having on the solar photovoltaic industry," Timminco chief financial officer Robert J. Dietrich said in a statement.

"The additional capital from this financing will strengthen our balance sheet and enable us to better manage uncertainties associated with short-term demand from Timminco's solar grade silicon customers, and potential risks with accounts receivable payment terms and outstanding customer deposits," he added.

"We are also complementing this equity financing with several programs to generate cash through the reduction of working capital."

Dietrich said he was "pleased that AMG has demonstrated a vote of confidence in our company and our business plans."

AMG chief financial officer William Levy said: "This funding should help enable Timminco to achieve its long-term goals. Despite the current economic situation, Timminco continues to offer a compelling value proposition to the crystalline solar market."

Canada Zinc sells units

Canada Zinc Metals raised C$4.89 million through a non-brokered private placement of units with Tongling Nonferrous Metal Group Holdings Co. Ltd.

The company sold 11.5 million units of one common share and one half-share warrant at C$0.425 per unit. Each whole two-year warrant will be exercisable at C$0.60 during the first year and at C$0.80 in the second year.

Canada Zinc Metals common stock (TSX: CZX) gained 4.55% or C$0.01 to close at C$0.23 on Monday. The company has a market capitalization of C$17.7 million.

Proceeds will be used for exploration and advancement of the company's zinc-lead properties and working capital purposes.

Canada Zinc Metals is a mineral resource exploration company based in Vancouver, B.C.

Tongling is an Anhui, China-based copper smelting company.

"We are extremely pleased to be entering into this financing agreement with Tongling," Canada Zinc chief executive Peeyush Varshney said in a statement.

"The work that we have been doing on the Akie property has been advancing the value and merit of the Cardiac Creek deposit and continues to attract the interest of the world's premier base metal companies. The Cardiac Creek deposit is one of the most significant discoveries in Canada in the past several years."

Tongling chief engineering officer Li Dongqing added: "We are pleased to be acquiring this initial stake in Canada Zinc Metals. Along with the Akie property, the significant prospective land package in the Kechika Trough represents a potential long-term district development opportunity. We look forward to continuing to build our relationship with the company."

Sensio to place units

Sensio Technologies plans to raise between C$1 million and C$1.5 million through a private offering of its common stock.

The company will sell about 3.33 million to 5 million units of one common share and one half-share warrant at C$0.30 per unit. Each whole two-year warrant will be exercisable at C$0.35 during the first year and at C$0.40 during the second year.

Sensio common stock (TSX: SIO) declined by 5.41% or C$0.02 to finish at C$0.35 on Monday. The company's market capitalization is C$8.1 million.

Proceeds will enable Sensio to pursue its strategic development plan. The remaining proceeds will be used for commercialization and working capital.

Montreal-based Sensio develops stereoscopic technologies used in conventional two-dimensional television channels, as well as plasma TVs, HDTV and glass-free three-dimensional displays.

"This new financing will enable Sensio to pursue its strategic development plan, specifically at the commercial level," Sensio president and chief executive Nicholas Routhier said in a statement.

"For manufacturers and studios wanting to put their electronic equipment and movies on the market as soon as 2010, we have to accelerate commercialization of our products both on the consumer 3D and the digital cinema markets. We have to maintain our lead on the key players of the industry and stay ahead."

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