Renewable Energy offers to repurchase, exchange convertibles due 2014

By Angela McDaniels

Tacoma, Wash., May 14 - Renewable Energy Co. ASA held a repurchase and exchange offer for up to €160 million principal amount of its subordinated convertible bonds due 2014, according to a company announcement.

The offer ran from 9:30 a.m. ET to 11:30 ET on May 14. The results will be announced on May 15.

Each bond has a face value of €50. Holders who wished to tender their bonds had to tender at least 15 bonds, or €750 principal amount.

The offer will be settled under the following terms:

• Cash payment of up to roughly NOK 780 million (equivalent to 65% of the offer amount), which equals a minimum application and allocation in the amount of NOK 3,655,000;

• The issuance of up to roughly NOK 213 million (equivalent to 18% of the offer amount) of REC02 bonds by way of a tap issue at par plus accrued interest from May 3, which equals a minimum application and allocation of REC02 bonds for a nominal amount of NOK 1 million; and

• The issuance of up to roughly NOK 213 million (equivalent to 18% of the offer amount) of REC03 bonds by way of a tap issue at par plus accrued interest from May 3, which equals a minimum application and allocation of REC03 bonds for a nominal amount of NOK 1 million.

The above figures are based on a euro/Norwegian krone exchange rate of 7.54, which is the fixed rate for the offer.

In conjunction with the offer, the company will issue up to 200 million new shares through a private placement, which is conditioned on the tender offer.

The company said it expects to allocate a significant part of the private placement to convertible bondholders who participate in the tender offer and may also give preferred allocation to existing shareholders.

The application period for the private placement expired at 1 p.m. ET on May 14.

The minimum application and allocation amount in the private placement will be the krone equivalent of €100,000.

The company said the offer is meant to improve its financial position and extend its debt maturities.

Bondholders can contact Arctic Securities ASA at 47 21 01 32 31.

Renewable Energy is a provider of solar electricity solutions based in Sandvika, Norway.

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