News

Evergreen Solar Prices $75 Million in Convertible Notes

June 26, 2005 by Jeff Shepard

Evergreen Solar Inc. (Marlboro, MA), a developer of photovoltaic (PV) products, announced the pricing of its offering of $75 million aggregate principal amount of convertible subordinated notes due 2012 in a private placement to qualified institutional buyers. The notes will bear interest at a rate of 4.375% per year and will be subordinated to all existing and future senior debt of Evergreen Solar. The company has granted to the initial purchasers of the notes a 30-day option to purchase up to an additional $15 million aggregate principal amount of the notes. The sale of the notes is expected to close on June 29, 2005.

The notes are convertible into shares of common stock of Evergreen Solar at an initial conversion rate of 135.3180 shares per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $7.39, subject to adjustment. The initial conversion price represents a premium of approximately 20% relative to the last reported sale price of common stock of Evergreen Solar on the Nasdaq National Market of $6.16 on June 23, 2005.

Evergreen Solar intends to use the net proceeds from the proposed offering for general corporate purposes, including capital expenditures, research and development, and potential investments in and acquisitions of complementary businesses, partnerships, minority investments, products or technologies, to fund further enhancements of its operating infrastructure and manufacturing capacity increases and for working capital.