正文
LDK Solar Plans to Offer $300 Million in Debt for Buybacks, Expansion and General Uses
NEW YORK (AP) -- LDK Solar Co. said Tuesday it plans to offer $300 million in debt to be used for buybacks, expansion and general purposes.
The Chinese solar-power company will issue senior notes due 2013, which can be converted into cash, American depositary shares or a combination of both. The interest rate, conversion price and other terms have not been determined.
LDK said it will use $150 million in proceeds for stock repurchases. It expects to put 75 percent of remaining funds toward construction of its polysilicon plant; 20 percent toward capacity expansion of its wafer production facilities; and 5 percent for other general purposes.
My Comments:
The financing news for the $300M is actually a good news.
LDK will use 50% of the money to
LDK face inventory, margings, and financinig for the expansions (as PJ and other analysts and investors worried).
1. Inventory is a closed issue.
2. Margin slide in recent Qs but still remain at around 25%-30% margin... and still higher than other solar companies.
3. Expansion funding. They need about $1.6B for the new expansion in the next 2 years. This time they only 150m from this new funding for expansion and use the other half for repurchasing their own stocks. Considering STP, JASO, SOLF, etc... none of them use the new money in repurchasing of stocks.
Now every thing is cleared and the only remaining issue is whether LDK will be able to complete their polusilicon plants on time, which will be the key to LDK's longterm and sustaining growth.
LDK use borrowed money to purchase their own stocks shows that they are confident in their future.
NEW YORK (AP) -- LDK Solar Co. said Tuesday it plans to offer $300 million in debt to be used for buybacks, expansion and general purposes.
The Chinese solar-power company will issue senior notes due 2013, which can be converted into cash, American depositary shares or a combination of both. The interest rate, conversion price and other terms have not been determined.
LDK said it will use $150 million in proceeds for stock repurchases. It expects to put 75 percent of remaining funds toward construction of its polysilicon plant; 20 percent toward capacity expansion of its wafer production facilities; and 5 percent for other general purposes.
My Comments:
The financing news for the $300M is actually a good news.
LDK will use 50% of the money to
LDK face inventory, margings, and financinig for the expansions (as PJ and other analysts and investors worried).
1. Inventory is a closed issue.
2. Margin slide in recent Qs but still remain at around 25%-30% margin... and still higher than other solar companies.
3. Expansion funding. They need about $1.6B for the new expansion in the next 2 years. This time they only 150m from this new funding for expansion and use the other half for repurchasing their own stocks. Considering STP, JASO, SOLF, etc... none of them use the new money in repurchasing of stocks.
Now every thing is cleared and the only remaining issue is whether LDK will be able to complete their polusilicon plants on time, which will be the key to LDK's longterm and sustaining growth.
LDK use borrowed money to purchase their own stocks shows that they are confident in their future.
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