First Solar pays down $145 million of loans as part of restructuring

By Marisa Wong

Madison, Wis., April 17 - First Solar, Inc. voluntarily prepaid all outstanding amounts under its credit facility agreement dated May 18, 2011, according to an 8-K filing with the Securities and Exchange Commission. The credit agreement is between subsidiary First Solar Manufacturing GmbH and Commerzbank AG, Luxembourg Branch as security agent.

The total repayment amount was about $145 million and was partially offset by the release of about $20 million in cash deposits that were previously restricted as security for the loan.

The company expects to incur $5 million in repayment related expense.

The debt paydown is part of the company's restructuring initiatives made in response to deteriorating market conditions in Europe.

First Solar announced the restructuring of its operations on Tuesday. The company said in a press release that it hopes to reduce costs by $30 million to $60 million this year and $100 million to $200 million annually going forward.

First Solar is a Tempe, Ariz.-based provider of comprehensive photovoltaic solar systems that use its advanced thin-film modules.

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