UPDATE 1-Vestas share issue raises $600 million

Tue Feb 4, 2014 12:26pm EST

* Shares offered at 5 pct below Tuesday's close

* Vestas needs stronger balance sheet to compete -CFO (Adds details, CFO quote, share price)

COPENHAGEN Feb 4 (Reuters) - Vestas Wind Systems raised 3.3 billion Danish crowns ($600 million) in an over-subscribed share issue, the wind turbine maker said on Tuesday.

Stock was alloted at a price of 162 crowns per share, five percent below Tuesday's close of 170.10 crowns, which was 4 percent down on the day, Vestas said in a statement.

The proceeds will be used to provide greater financing flexibility and to further enhance its financial stability, by strengthening its solvency ratio and obtaining more flexible banking arrangements, the company said.

"We are debt free but we need a stronger balance sheet to be able to compete more head to head with the strong financial players in the market," Vestas' Chief Financial Officer Marika Fredriksson told Reuters.

The share issue was announced late on Monday in connection with a full-year earnings report that showed that Vestas, after two years of cost-cutting, expects profit to improve in 2014.

DNB, HSBC, Nordea and SEB are coordinating the share issue, and Rothschild is Vestas' financial adviser. Payment and settlement is expected to take place on Feb. 10.

Vestas also said on Monday that it had agreed a new five-year revolving credit facility of 850 million euros with Nordea, DNB, HSBC and SEB. (Reporting by Teis Jensen and Niklas Pollard Additional reporting by Shida Chayesteh; Editing by Louise Ireland)

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