Solyndra sells $175 million convertible promissory notes after scrapping IPO

By Rebecca Melvin

New York, June 18 - Solyndra Inc. has entered into an agreement to sell $175 million of secured convertible promissory notes in a private placement with some of its existing investors, according to a news release.

The funding was raised in lieu of a tentative initial public offering of shares.

"Given the ongoing uncertainties in the public capital markets, we elected to pursue alternative funding from our existing investor base," Solyndra chief executive Chris Gronet said in the release.

Proceeds from sale of the notes will be used to fund the company's existing operations and support its growth plans.

The company expects first production from its Fab 2 manufacturing complex to occur in the fourth quarter, about two months ahead of schedule.

Solyndra didn't return Prospect News' phone calls for additional information about the notes.

Solyndra also announced that it has submitted a request with the Securities and Exchange Commission to withdraw its registration statement on Form S-1, which was originally filed with the SEC in December.

The company elected not to proceed with an IPO of shares of its common stock at this time due to adverse market conditions and the availability of alternative funding from existing investors. No shares of Solyndra's common stock were sold under the registration statement.

Fremont, Calif.-based Solyndra makes solar panels for the commercial rooftop market.

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