By Rebecca Melvin
New York, March 11 - Suntech Power Holdings Co. Ltd. priced Tuesday $500 million of five-year convertibles, to yield 3%, with an initial conversion premium of 36%, according to a syndicate source.
There was also a greenshoe of $75 million. Originally, the deal was expected to be $425 million with a $75 million shoe.
The Rule 144A deal priced on the cheap end of talk for the coupon, which was talked between 2.5% to 3%; and at the rich end of talk for the initial conversion premium, which was seen between 31% and 36%.
Goldman Sachs (Asia), UBS Investment Bank and ABN Amro Rothschild were bookrunners, with Goldman as left lead bookrunner and sole global coordinator of the offering. UBS was stabilization agent.
The notes are non-callable and there are no puts.
Suntech expects to use most of the proceeds for procuring upstream supplies, while the rest is earmarked for production capacity expansion and new technology commercialization.
Suntech priced $425 million of 0.25% convertible notes in February 2007.
Suntech is a Wuxi, China-based maker of solar cells.
| Issuer: | Suntech Power Holdings Co. Ltd.
|
| Issue: | Convertible senior notes
|
| Amount: | $500 million, upsized from $425 million
|
| Greenshoe: | $75 million
|
| Maturity: | March 15, 2013
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 36%
|
| Conversion price: | $41.01
|
| Call: | Non callable
|
| Puts: | No puts
|
| Bookrunners: | Goldman Sachs, UBS, and ABN Amro
|
| Pricing date: | March 11
|
| Settlement: | March 17
|
| Distribution: | Rule 144A
|
| Price talk: | 2.50% to 3%, up 31% to 36%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
