Evergreen Solar (ESLR) To Finance New Plant With $60 Million Public Offering

Evergreen Solar just announced a public offering of its commonstock, worth $60 million. Piper Jaffray and Co is the underwriter forthe offering, and Evergreen Solar intends to give them a 30-day optionto buy an additional $9 million worth of stock.

Per a company press release, the money raised from the offering will be used to finance the plant Evergreen plans to build in Wuhan, China:

Evergreen Solar intends to use the net proceeds from the offering,after deducting underwriting discounts and Evergreen Solar’s estimatedexpenses related to the offering (1) to fund its planned initial 100 MWwafer manufacturing facility in Wuhan, China, which, assuming the Wuhangovernment provides or facilitates financing for approximatelytwo-thirds of the initial expansion cost, is expected to requirebetween $15 million and $20 million; (2) to purchase capital equipmentrequired for further expansion of its Midland, Michigan string factory;and (3) for general corporate purposes, including working capital andpossible payments to its Sovello joint venture (or Sovello’s lenders)that may be required under certain circumstances.

Evergreen Solar (ESLR) To Finance New Plant With $60 Million Public Offering of Common Stock