Suntech Power to offer US$425M of convertible senior notes

NYSE-listed and Wuxi-based Suntech Power Holdings Co. said on Monday it intends to offer US$425 million of convertible senior notes due 2013 in a private offering.

The notes will be convertible into cash, American depositary shares or a combination of both, depending on circumstances.

The interest rate, conversion price and other terms will be decided upon when the offering is priced.

Initial buyers will be given a 30-day option to buy up to an additional US$75 million of the notes to cover any over-allotments.

About 52.6% of the proceeds will go into procuring upstream supplies, and the remaining US$125 million will be used for production capacity expansion and new technology commercialization.

Any extra net proceeds received from the exercise of options to buy additional notes will be used for general corporate purposes and potential acquisitions.