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Tuesday, April 08, 2008

LDK Solar Announces Proposed Offering of US$300 Million Senior Convertible Notes

LDK Solar Announces Proposed Offering of US$300 Million Senior Convertible Notes

XINYU CITY, China and SUNNYVALE, Calif., April 8, 2008 LDK Solar Co., Ltd. (NYSE: LDK ), announced today its intention to offer, subject to market and other conditions, approximately $300 million aggregate principal amount of Senior Convertible Notes due 2013 pursuant to Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act"). The notes are convertible into LDK Solar's American depositary shares, cash or a combination of cash and American depositary shares. The interest rate, conversion price and other terms are to be determined by negotiations between LDK Solar and the initial purchasers of the notes.

LDK Solar expects to use the net proceeds of the offering to enter into prepaid forward contracts with one or more of the initial purchasers and/or their affiliates to repurchase approximately $150 million worth of its American depositary shares. In addition, LDK Solar expects to use approximately 75% of the remaining net proceeds to fund the construction of a polysilicon manufacturing plant, approximately 20% of the remaining net proceeds to fund the capacity expansion of its wafer production facilities and 5% of the remaining net proceeds to fund other general corporate activities.

This notice does not constitute an offer to sell or the solicitation of an offer to buy securities. Any offers of the securities will be made only by means of a private offering memorandum. The sale of the notes and the American depositary shares issuable upon conversion have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, LDK Solar's ability to raise additional capital to finance LDK Solar's activities; the effectiveness, profitability, and marketability of its products; the future trading of the securities of LDK Solar; the ability of LDK Solar to operate as a public company; the period of time for which its current liquidity will enable LDK Solar to fund its operations; LDK Solar's ability to protect its proprietary information; general economic and business conditions; the volatility of LDK Solar's operating results and financial condition; LDK Solar's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in LDK Solar's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about LDK Solar and the industry. These statements are based upon information available to LDK Solar's management as of the date hereof. Actual results may differ materially from the anticipated results because of certain risks and uncertainties.

LDK Solar undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although LDK Solar believes that the expectations expressed in these forward-looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

Source: LDK Solar Co., Ltd.

1 comment:

Ryan said...

Solar stocks are continuing to get support from all angles. Today Claymore Securities just listed the Claymore/MAC Global Solar Energy Index ETF (symbol TAN), and it sounds like a safe bet in this volatile solar market. Solar stocks have been moving 5% daily in both directions on any news or pending laws that are going to be passed. Solar has been an interesting place to invest this year and had outperformed the market. The fund has 25 different holdings, and only has an expense ratio capped at .65%. The fund represents companies in five countries including China, USA, and Germany. The fund stated that the methodology for this ETF is to select companies that specialize in providing solar energy products and services. It may not be safe to invest in just one solar stock, so I would recommend this ETF as a small position over a single solar stock.

Ryan Wegner
UW-Madison School of Business