(Adds details of outlook, SEC decision, share activity)
LOS ANGELES, April 8 Chinese solar wafer maker
LDK Solar Co LDK.N said on Tuesday it would issue $300
million in convertible notes to help fund construction of a new
polysilicon plant and expand its wafer production.
LDK will also use the proceeds to enter into forward
contracts to buy back about $150 million worth of its American
The company's stock fell 73 cents, or 2.3 percent, at
$31.77 following the announcement.
LDK on Monday said the U.S. Securities and Exchange
Commission staff had informed it that it would not recommend
any action against the company over its inventory accounting
practices after a former financial controller had contended
that the company overstated its polysilicon stocks.
Later that day, LDK raised its first-quarter revenue
forecast to a range of $225 million to $235 million from a
previous forecast of $195 million to $210 million. Wall Street
analysts are expecting revenue of $217 million, according to
The company also said it expects to earn between 40 cents
and 44 cents per American Depositary Share for the first
quarter. Its previous view had been 39 cents to 44 cents per
ADS. Analysts' average estimate is 40 cents per ADS.
LDK shares have dropped more than 32 percent this year as a
weakened economy and delays in extending critical U.S. tax
credits for renewables have sparked concerns about demand for
alternative energy sources. Since hitting a 2008 low of $19.64
on March 13, the stock has gained more than 62 percent.
(Reporting by Matt Daily; editing by Mark Porter and Derek