Wednesday, June 25, 2008

Evergreen Solar seeks $300M through notes sale

By Mass High Tech Staff

Solar panel manufacturer Evergreen Solar Inc. has filed a shelf registration with the U.S. Securities and Exchange Commission announcing its intention to raise $300 million through the sale of convertible notes through 2013. Underwriters will be granted the option to buy another $45 million, under terms of the sale.

Evergreen Solar (Nasdaq: ESLR) says it intends to use the funds to complete the construction of its solar panel manufacturing center in Devens, as well as for other corporate needs, including the construction of an additional facility to produce heat-resistant string to be used in the manufacturing of the company’s wafers.

In connection with the notes offering, Evergreen Solar will also enter into a capped call transaction with an affiliate of Lehman Brothers Inc. The transaction is expected to increase the conversion premium of the notes and to reduce the potential dilution upon conversion of the notes.

Last week, Evergreen Solar announced two new long-term contracts for the production of solar panels, bringing its backlog of orders to $1.7 billion over the next four years.

However, despite the company’s sales, its stock price has declined more than 40 percent over the past six months.

In 2007, the company reported a net loss of $16.6 million on revenue of $69.9 million.