$175m (+25m) 144a senior cb pricing tonight from BARC/CS.
Terms: 7yr, 3.625-4.125% up 20-25%, put year 5, prot. concurrent capped call transaction. Based in China, Renesola is a global manufacturer of solar wafers & solar power products. $740m mkt cap.
PF Cash = $461m
PF debt = $697m
FCF + for first time in 2010
LTM FCF+ = $267m
EBITDA = $302m
Industry over capacity looming.
We’ll use L+900
Cap vol @35, stk brw is not normal.
For some neg 3%+
A few may get borrow facility.
We’ll use neg 2.5% for modelling.
Theo = 100.125
Outright demand supposedly strong (optically cheap w/nice yield pick-up over stock.
Push for cheaps w/calendar heating up & limited stock borrow
Leading global manufacturer of solar wafers and producer of solar power products, based in China
SOL’s primary biz is wafers, but w/’09 acq of JC Solar are in cells & modules, also. Comp first polysilicon mfg facility 2010 w/plan to more than double cap in 2011. Wafer cap exp from 1300MW to 1900MW in 2011. Cap=ex from $137m to $350m. Generated +FCF for first time in 2010 could easily turn neg again. Inf over capacity could be just around the corner w/subsidy prog in W.Europe over, CF & ops could be seiously impacted.
Our assigned spread L+900