By Kenneth Lim
Boston, Feb. 8 - Suntech Power Holdings Co. Ltd. priced an upsized $425 million of five-year convertible senior unsecured notes at the rich end of talk a day ahead of schedule on Wednesday, at a coupon of 0.25% and an initial conversion premium of 30%.
The convertibles were offered at par. The notes were talked at a coupon of 0.25% to 0.75% and an initial conversion premium of 25% to 30%.
The size of the deal was originally $300 million. The over-allotment option was increased to an additional $75 million from an additional $60 million.
Goldman Sachs (Asia), UBS Investment Bank and ABN Amro Rothschild were the bookrunners of the Rule 144A offering.
The notes are non-callable for the first three years, after which they may be called subject to a hurdle at 130% of the conversion price. They may be put in the third year.
The notes have dividend and takeover protection.
Suntech, a Wuxi, China-based maker of solar cells whose American Depositary Shares trade on the New York Stock Exchange, said it will use $100 million of the proceeds to expand its manufacturing lines, $50 million to buy raw materials, $100 million to repay a bridge loan used to pay for its acquisition of MSK Corp. and up to $50 million for other general purposes.
| Issuer: | Suntech Power Holdings Co. Ltd.
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunners: | Goldman Sachs (Asia), UBS Investment Bank and ABN Amro
|
| Amount: | $425 million
|
| Greenshoe: | $75 million
|
| Maturity: | Feb. 15, 2012
|
| Coupon: | 0.25%
|
| Price: | Par
|
| Yield: | 0.25%
|
| Conversion premium: | 30%
|
| Conversion price: | $48.76
|
| Conversion ratio: | 20.5074
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Feb. 15, 2010, thereafter callable subject to hurdle at 130% of conversion price
|
| Puts: | Feb. 15, 2010
|
| Price talk: | 0.25%-0.75%, up 25%-30%
|
| Pricing date: | Feb. 7, after the close
|
| Settlement date: | Feb. 12
|
| Distribution: | Rule 144A
|
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