Evergreen Solar To Raise $300 Million For Expansion Project

MARLBORO, Mass.--(BUSINESS WIRE)--Evergreen Solar, Inc. (“Evergreen Solar”) (Nasdaq: ESLR), a manufacturer of solar power panels, announced today that it has filed a universal shelf registration statement on Form S-3 with the United States Securities and Exchange Commission (the “SEC”) pursuant to which it intends to offer, subject to market and other conditions, $300 million aggregate principal amount of senior convertible notes due 2013 (the “notes”). Evergreen Solar expects to grant to the underwriters a 30-day option from the date of the final prospectus supplement to purchase up to an additional $45 million aggregate principal amount of notes to the extent the underwriters sell more than $300 million aggregate principal amount of notes in the note offering.

The notes will be convertible into cash up to their principal amount and shares of Evergreen Solar’s common stock for the remainder, if any, of the conversion value in excess of such principal amount. The interest rate, conversion rate, conversion price, offering price and other terms of the notes will be determined at the time of pricing of the notes. Lehman Brothers Inc. is acting as the sole book-running manager for the notes offering.

Evergreen Solar intends to use the net proceeds from the notes offering, after deducting underwriting discounts and Evergreen Solar’s estimated expenses related to the offering, including the cost of the capped call transaction and registered sale of borrowed shares of common stock described below, to complete the construction and equipping of its fully integrated solar panel manufacturing facility located in Devens, Massachusetts, to begin construction of a manufacturing facility that will produce heat resistant string to be used in the manufacturing of Evergreen Solar’s wafers and for general corporate purposes, including purchases of or prepayments for polysilicon and other raw materials, and working capital needs.