Key Developments For Evergreen Solar, Inc.
Evergreen Solar, Inc. (ESLR.O) (Consolidated Issue listed on NASDAQ Global Market)
Evergreen Solar, Inc. Disputes Claims From Lehman Brothers Unit-Reuters
Reuters reported that Evergreen Solar, Inc. said that Lehman Brothers does not have the right to terminate a 'capped call' transaction that occurred in connection with its 2008 note offering. Evergreen Solar said in an SEC filing that Lehman Brothers Derivatives Inc sent the company a letter in September 'purporting to terminate a capped call transaction' between LB OTCD and that the solar power company had defaulted on payments. The company received a letter from LB OTCD, which claimed that Evergreen failed to pay more than $2.7 million on two dates plus about $200,000 in interest, in July. Evergreen entered into the $68.1 million capped call transaction with LB OTCD in connection with the solar power company's $373.75 million note offering in 2008. The transaction was designed to reduce the potential dilution from the conversion of the 4% senior convertible notes due in 2013 into shares of the company's stock.
Evergreen Solar, Inc. Signs Contract Manufacturing Agreement With Jiawei Solar
Evergreen Solar, Inc. announced that it has finalized its agreements with Jiawei Solarchina Co., Ltd., and the Wuhan Government's Hubei Science & Technology Investment Co., Ltd. (HSTIC). Under these agreements: - Evergreen Solar will manufacture String Ribbon wafers using its Quad furnaces at a leased facility being built by Jiawei in Wuhan, China on Jiawei's campus. - Jiawei will convert the String Ribbon wafers into Evergreen Solar branded panels on a contract manufacturing basis. - Evergreen Solar will reimburse Jiawei for its cell and panel conversion costs, plus a contract manufacturing fee. The actual price paid to Jiawei will be negotiated annually. - Evergreen Solar will invest $17 million in cash and equipment in the Wuhan String Ribbon operation. HSTIC will provide Evergreen Solar $33 million of 7.5% financing, which Evergreen Solar must repay no later than July 2014. Jiawei will make a similar investment for its cell and panel operations with the support of HSTIC. - Initial capacity will be approximately 100 MW. Factory construction has begun and the parties expect that wafer, cell and panel production will begin in the spring of 2010. - The parties intend to expand production capacity of their respective manufacturing operations to approximately 500 MW by 2012, the timing and extent of any potential expansion will be determined in 2010.
Evergreen Solar, Inc. Announces Cooperation With Export-Import Bank Of United States
Evergreen Solar, Inc. announced that it is working with the Export-Import Bank of the United States (Ex-Im Bank) to provide attractive low-interest financing for solar projects using Evergreen Solar panels outside of the United States. The Ex-Im Bank will offer U.S. Dollar denominated loans directly to project developers or project owners that will cover 85% of the U.S. made product cost and up to an additional 30% of the cost of the product to be applied to local installation costs. Remaining project costs can be financed with separate bank loans as needed.
Evergreen Solar, Inc. Closes Public Offering
Evergreen Solar, Inc. announced that it has closed the sale of its previously announced public offering of common stock at a price to the public of $1.80 per share for a total of 42.55 million shares, including the sale of 5.55 million shares pursuant to the exercise in full of the underwriter`s over-allotment option. Total proceeds, net of underwriter's discount, resulting from the offering, including the exercise of the underwriter's over-allotment option, were approximately $72.5 million. The Company expects to use the net proceeds from the offering (1) to fund its planned initial 100 MW wafer manufacturing facility in Wuhan, China, which, assuming the Wuhan government provides or facilitates financing for approximately two-thirds of the initial expansion cost, is expected to require between $15 million and $20 million; (2) to purchase capital equipment required for further expansion of its Midland, Michigan string factory; and (3) for general corporate purposes, including working capital and possible payments to its Sovello joint venture (or Sovello's lenders) that may be required under certain circumstances.
Evergreen Solar, Inc. Announces $60 Million Public Offering of Common Stock
Evergreen Solar, Inc. announced that it has commenced a $60 million public offering of its common stock. Evergreen Solar expects to grant to the underwriter a 30-day option from the date of the final prospectus supplement to purchase up to an additional $9 million of its common stock. Evergreen Solar intends to use the net proceeds from the offering, after deducting underwriting discounts and Evergreen Solar`s estimated expenses related to the offering to fund its planned initial 100 MW wafer manufacturing facility in Wuhan, China, which, assuming the Wuhan government provides or facilitates financing for approximately two-thirds of the initial expansion cost, is expected to require between $15 million and $20 million; to purchase capital equipment required for further expansion of its Midland, Michigan string factory; and for general corporate purposes, including working capital and possible payments to its Sovello joint venture (or Sovello`s lenders) that may be required under certain circumstances. Piper Jaffray & Co. is acting as sole underwriter for the offering.
