WUXI, China, March 12 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co.,
Ltd. (NYSE: STP) announced today the pricing of US$500 million of 3.00%
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"). Suntech also granted 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. The notes will pay cash interest semiannually
at a rate of 3.00 percent per annum and in certain circumstances, will be
convertible into cash, American depositary shares ("ADSs") representing
Suntech's ordinary shares, or a combination of cash and ADSs, at Suntech's
election. The initial conversion rate, subject to adjustment, is 24.3153 ADSs
per US$1,000 principal amount of notes (which represents an initial conversion
price of approximately US$41.13 per ADS). The sale of the notes is expected to
close on March 17, 2008.
Suntech currently expects to use approximately US$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.
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.
/CONTACT: In China: Rory Macpherson, Investor Relations Manager of
Suntech Power Holdings Co., Ltd., +86-510-8531-8922, or firstname.lastname@example.org;
Or In the United States: Sanjay M. Hurry, Vice President of The Piacente Group,
Inc., +1-212-481-2050, or email@example.com, for STP/
CO: Suntech Power Holdings Co., Ltd.
IN: CPR ENV OIL
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6737 03/12/2008 08:00 EDT http://www.prnewswire.com