Suntech Power greenshoe exercised, lifting 0.25% convertibles to $500 million

By Angela McDaniels

Seattle, Feb. 15 - Suntech Power Holdings Co., Ltd. said the underwriters of its offering of 0.25% convertible senior unsecured notes due 2012 exercised their $75 million over-allotment option in full, raising the size of the deal to $500 million.

The company priced $425 million of the convertibles at par with an initial conversion premium of 30% and a conversion price of $48.76 on Feb. 7 via bookrunners Goldman Sachs (Asia), UBS Investment Bank and ABN Amro Rothschild.

The Rule 144A offering was upsized from $300 million. Talk put the coupon at 0.25% to 0.75% and the conversion premium at 25% to 30%.

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.

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