WUXI, China, Feb. 8 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd.
(NYSE: STP) today announced the pricing of US$425 million of 0.25% Convertible
Senior Notes due 2012 in a private offering to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as amended (the
''Securities Act''). The initial purchasers hold a 30-day option to purchase
up to an additional US$75 million of the notes to cover over-allotments, if
any. As a result of strong investor interest and market demand, the offering
size was upsized from US$300 million to US$425 million. Pricing took place
after one day of marketing.
The notes will pay cash interest semiannually at a rate of 0.25 percent
per annum and in certain circumstances, will be convertible, at Suntech's
election, into cash, American depositary shares (''ADSs'') representing
Suntech's ordinary shares or a combination of cash and ADSs. The initial
conversion rate, subject to adjustment, is 20.5074 ADSs per US$1,000 principal
amount of notes (which represents an initial conversion price of approximately
US$48.76 per ADS). The sale of the notes is expected to close on February 12,
Suntech currently expects to use the net proceeds from the offering of the
notes for the following purposes: approximately US$150 million to expand its
manufacturing lines for the production of PV cells and modules and thin film
modules and to enhance its research and development efforts; approximately
US$100 million to purchase or prepay for raw materials; US$100 million to
repay its one year, US$100 million-equivalent bridge loan it obtained in
connection with its acquisition of MSK Corporation; and the remaining amounts
for general corporate purposes. 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.
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 240th 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:
VP of Business Development
Suntech Power Holdings Co., Ltd.
Ogilvy Public Relations Worldwide
SOURCE Suntech Power Holdings Co., Ltd.
/CONTACT: Steven Chan, VP of Business Development of Suntech Power
Holdings Co., Ltd., +86-510-8531-8910, or firstname.lastname@example.org; or Rory
Macpherson, Consultant of Ogilvy Public Relations Worldwide, +86-10-8520-6553,
or email@example.com, for Suntech /
CO: Suntech Power Holdings Co., Ltd.
IN: CPR OIL UTI
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2863 02/08/2007 07:30 EST http://www.prnewswire.com