suntech-power-raises-500-million-from-upsized-cb

Suntech Power raises $500 million from upsized CB

The bonds are priced with a 36% conversion premium after the stock has fallen 66% since late December.

By Anette Jönsson

March 13, 2008

US-listed solar power play Suntech Power has raised $500 million from its second convertible bond in just over a year, making good use of the fact that many investors feel the sell-off in the stock has been too aggressive.

Disappointing full-year earnings from several solar power players, including Suntech itself, and a shift from high-beta stocks to less ôriskyö paper amid concerns about a US slowdown, has led to a 66% collapse in its share price since reaching a record close of $88.35 on December 26. When the CB priced after the close of New York trading Tuesday, the stock was quoted at $30.24, which was slightly below the $37.51 where it traded when...

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