China's Suntech Power to price $425 million of five-year convertibles

By Rebecca Melvin

New York, March 10 - Suntech Power Holdings Co. Ltd. plans to price $425 million of five-year convertibles, according to a release Monday.

There is an over-allotment option for up to an additional $75 million of notes.

The interest rate, conversion price and other terms of the Rule 144A deal will be determined at the time of pricing the offering, the release said.

Suntech expects to use about $300 million of proceeds for procuring upstream supplies and the balance for production capacity expansion and new technology commercialization.

It will use any additional proceeds for general corporate purposes and for potential acquisitions of, or investments in, businesses and technologies that it believes will complement its current operations and its expansion strategies.

Last year, in February 2007, Suntech priced $425 million of 0.25% five-year convertible notes, sold via Goldman Sachs (Asia), UBS Investment Bank and ABN Amro Rothschild.

The five-year notes priced on the rich end of talk, which was for a coupon of 0.25% to 0.75%, with an initial conversion premium of 25% to 30%.

Suntech is a Wuxi, China-based maker of solar cells whose American Depositary Shares trade on the New York Stock Exchange.

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