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UPDATE 1-LDK Solar to issue $300 mln in convertible notes
April 8, 2008 / 4:45 PM / 10 years ago

UPDATE 1-LDK Solar to issue $300 mln in convertible notes

(Adds details of outlook, SEC decision, share activity)

LOS ANGELES, April 8 (Reuters) - 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 Depositary Shares.

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 Reuters Estimates.

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 Caney)

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