Tuesday, March 11, 2008

Suntech to Offer $425 Million in Notes

March 10, 2008: 05:44 PM EST

NEW YORK (Associated Press) - Suntech Power Holdings Co., a Chinese maker of solar-power products, said Monday it plans to offer $425 million in convertible senior notes due 2013 in a private offering.

In some instances, the notes will be convertible into cash, American depositary shares, or a combination of both, Suntech said.

The interest rate, conversion price and other terms will be determined when the offering is priced, the company said.

Suntech said it plans to grant to the initial buyers a 30-day option to purchase up to an additional $75 million of the notes to cover possible over-allotments.

Suntech said it expects to use about $300 million of the offering's net proceeds for procuring upstream supplies and the rest for production capacity expansion and new technology commercialization.

Any additional net proceeds received from the exercise of options to buy additional notes will be used for general corporate purposes and potential acquisitions, Suntech said.

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