By Kenneth Lim
Boston, July 18 - Trina Solar Ltd. priced $120 million of five-year convertible senior notes on Thursday at the cheap end of talk to yield 4% with an initial conversion premium of 21% over a concurrent stock lending facility, according to a filing with the Securities and Exchange Commission.
The notes were offered at par. Price talk guided for a coupon of 3.5% to 4% and an initial conversion premium of 21% to 27%, market sources said.
There is an over-allotment option for a further $18 million.
Credit Suisse Securities (USA) LLC, ABN Amro Bank NV, London Branch, and Deutsche Bank Securities Inc. were the joint bookrunners of the registered off-the-shelf offering.
There was a concurrent lending agreement in which Trina is lending up to about 4.07 million of its American Depositary Shares. About 3.83 million of the ADS have been initially offered at $28 apiece, and the remaining will be sold subsequently at prevailing market prices.
The convertibles will be non-callable and may be put in the third year.
The notes will have takeover and dividend protection.
Trina Solar, a Changzhou, China-based maker of solar-power products, said it will use about $90 million of the proceeds to expand its manufacturing lines for silicon ingots, wafers, solar cells and solar modules. It will use another $20 million to buy raw materials, and the remaining proceeds will be used for research and development and general corporate purposes.
| Issuer: | Trina Solar Ltd.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, ABN Amro Bank NV, London Branch, and Deutsche Bank Securities Inc.
|
| Amount: | $120 million
|
| Greenshoe: | $18 million
|
| Maturity: | July 15, 2013
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 21%
|
| Conversion price: | $33.88
|
| Conversion ratio: | 29.5159
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | July 15, 2011
|
| Price talk: | 3.5%-4%, up 21%-27%
|
| Pricing date: | July 17, after the close
|
| Settlement date: | July 23
|
| Distribution: | Registered
|
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