solarfun-prices-adscb-offer-despite-share-slump

Solarfun prices ADS/CB offer despite share slump

The manufacturer of solar cells opts for an unusual deal structure that ensures there is enough stock borrow available to hedge the CB.
Nasdaq-listed Solarfun Power surprised some market watchers by completing a combined sale of convertible bonds and American depositary shares ADS after the US market closed on Wednesday, despite a continued decline in its share price.

On the day of pricing, the Chinese manufacturer of photovoltaic solar cells, modules and ingots fell 11.5% amid a sharp sell-off in the entire solar power sector, taking its total losses over the past 12 sessions to 55%. However, sources say the company needed the money to pay for an ongoing expansion project and for the acquisition of wafers and thus decided to go ahead.

And while the recent sell-off has been quite spectacular, so was the rally in December...
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