Boston, MA 06/10/2014 (wallstreetpr) – Trina Solar Limited (ADR) (NYSE:TSL) offered 8.8 million American Depositary Shares (ADS) at $11.00 per ADS. Each ADS represents 50 ordinary shares of Trina Solar with an ADS offerings of $0.00001 per share.
Trina Solar also granted the underwriters (a 30-day option) for the offering in case of over-allotment. The investor can purchase up to an additional ADSs of 1.32 million.
In addition, Trina Solar Limited (ADR) (NYSE:TSL) priced the co-existing convertible senior notes of $150 million (aggregate principal amount) which is due in 2019. The Company offered a grant of 30-day option for the initial purchaser to obtain additional notes of $22.5 million (aggregate principal amount).
The closing of ADS offering is subject to the closing of notes offering and vice versa. The Company also entered into call options to avoid the volatility in prices of the notes and the ADS. The offerings are likely to close by June 11, 2014.
Deutsche Bank Securities, Barclays Capital, Goldman Sachs, and J.P. Morgan Securities act as joint manager for ADS offering. But, HSBC Securities acts a co-manager for the purpose.
Rationale behind the offerings
Trina Solar Limited (ADR) (NYSE:TSL) intends to increase the financial position through the net proceeds from the ADS offerings. It helps the Company to fund the development of solar power projects, expand manufacturing capacity and working capital requirement. However, the purpose may change depending upon the Company’s management decision.
Development of solar projects: Trina Solar believes that the synergies between modules sales and development of new solar projects will generate capital gains and create potential for future revenue.
Capacity plan for FY2014: The Company plans to increase the total PV module shipments to a range of 3.6 GW to 3.8 GW, including 400 to 500 MW PV modules from its downstream projects.
Financial condition: Trina Solar Limited (ADR) (NYSE:TSL) had total cash of $577.7 million, total borrowings of $982.5 million and working capital of $23.8 million as of March 31, 2014. The increase in net proceeds from the offerings will further enhance its financial conditions.
