WUXI, China, March 10, 2008 /Xinhua-PRNewswire via COMTEX News Network/ -- Suntech Power Holdings Co.,
Ltd. (NYSE: STP) announced today that it intends, subject to market and other
conditions, to offer an aggregate of US$425 million convertible senior notes
due 2013, in a private offering to qualified institutional buyers pursuant to
Rule 144A under the Securities Act of 1933, as amended (the ''Securities
Act''). In some circumstances, the notes will be convertible into, at
Suntech's election, cash, American depositary shares (''ADSs'') representing
Suntech's ordinary shares or a combination of cash and ADSs. The interest
rate, conversion price and other terms of the notes will be determined at the
time of pricing of the offering. Suntech intends to grant to the initial
purchasers a 30-day option to purchase up to an additional US$75 million of
the notes to cover over-allotments, if any.
Suntech currently expects to use approximately $300 million of the net
proceeds from the offering of the notes for procuring upstream supplies and
the balance for production capacity expansion and new technology
commercialization. Suntech will use any additional net proceeds received
from the initial purchasers' exercise of their option to purchase additional
notes, if any, for general corporate purposes and for potential acquisitions
of, or investments in, businesses and technologies that it believes will
complement its current operations and its expansion strategies.
The convertible senior notes and Suntech's ordinary shares represented by
the ADSs, if any, issuable upon conversion of the notes have not been
registered under the Securities Act or the securities laws of any other
jurisdiction. Suntech will file a shelf registration statement for resale of
the notes and Suntech's ordinary shares represented by the ADSs, if any,
issuable upon conversion of the notes and use its reasonable best efforts to
cause such registration statement to become effective under the Securities Act
by the 180th day after the notes are issued. Unless they are registered,
these notes may be offered or sold only in transactions that are exempt from
registration under the Securities Act and the securities laws of any other
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such offer, solicitation or
sale would be unlawful. Any offers of the notes will be made only by means of
a private offering memorandum.
Forward Looking Statements
This press release contains forward-looking statements. The matters
discussed herein, including Suntech's intention to complete the notes offering,
are based on current management expectations. Completion of the proposed
notes offering is subject to market conditions and other factors.
For more information, please contact:
Investor Relations Manager
Suntech Power Holdings Co., Ltd.
In the United States:
Sanjay M. Hurry
The Piacente Group, Inc.
SOURCE Suntech Power Holdings Co., Ltd.