Suntech & Evergreen Make New Public Offerings

Suntech Power Holdings Co. Ltd. announced that it intends to offer, subject to market and other conditions, 20,000,000 American Depositary Shares (ADSs), each representing one ordinary share of the company. The company intends to grant to the underwriter an option to purchase up to 3,000,000 additional ADSs to cover over-allotments.

Suntech  said that it plans to use the net proceeds from the offering for working capital and general corporate purposes, including repurchases and redemptions of its existing securities such as the repurchase obligation under its 0.25% Convertible Senior Notes Due 2012 issued in February 2007. UBS Investment Bank (as Global Coordinator and Stabilization Agent), Goldman Sachs L.L.C. and Deutsche Bank Securities Inc. will act as underwriters for the offering.

Evergreen Solar Inc. announced that it priced its previously announced public offering of common stock at a price to the public of US $1.80 per share for a total of 37,000,000 shares to be sold in the offering. The offering will result in gross proceeds of $66.6 million and net proceeds, after deducting underwriting commissions and other offering expenses, of approximately $63.0 million to Evergreen Solar.

The company also granted the underwriter a 30-day option to purchase up to an additional 5,550,000 shares of its common stock. The offering is expected to close on or about May 26, 2009.

Evergreen Solar expects to use the net proceeds from the offering to fund its planned initial 100-megawatt wafer manufacturing facility in Wuhan, China, which, assuming the Wuhan government provides or facilitates financing for approximately two-thirds of the initial expansion cost, is expected to require between $15 million and $20 million. Piper Jaffray & Co. is acting as sole underwriter for the offering.

“Late this week Evergreen Solar (ESLR) and Suntech (STP) raised $67MM and $250MM respectively in secondary offerrings. This has been the first solar financing’s in quite awhile, hopefully this is an early sign that there is “sun” light at the end of the current industry malaise,” fincancial analyst J. Peter Lynch said.

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