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Non-Tech : Alternative energy -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (10238)	3/8/2011 7:20:39 PM
From: Eric	Respond to of 16955

More on STP Suntech Reports Big Q4 and $3B in 2010 Revenue, Stock Rallies Record-setting revenue but a soft gross margin. Almost $1B in revenue in Q4, almost $3B for the year. greentechmedia.com

To: Jacob Snyder who wrote (10238)	3/9/2011 4:14:37 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 16955

LDK Solar: Understanding Recent Financing Activities Since last November, when LDK Solar (NYSE: LDK) reported its third quarter 2010 earnings, the company has announced a series of significant business developments. Most of these announcements are linked to LDK’s ongoing debt restructuring, especially ahead of the company's 400m convertible bond debt potentially becoming due in April. In addition, LDK also raised its fourth quarter 2010 guidance. In a first attempt to revolve its 400m convertible bond debt, LDK announced an exchange offer to extend the due date by two years. As an incentive, current bond holders were offered a one time cash bonus up to 8.5% of the bond value held. Two weeks later, LDK increased the cash bonus to 10%. However when the final results were announced, only 32m of the company’s 300m exchange offers were tendered... A month after LDK’s failed exchange offer, the company announced a secondary offering. When the deal closed, LDK raised a net 164.2m through the issuance of 13.8m new ADS at 12.40 per share. Although the closing price for this secondary offering is well above LDK’s 52 week low of 4.97 last year, it represents a steep discount to the 39.29 conversion price on the company's convertible bonds. Had LDK’s exchange offer succeeded, significant dilution could have been avoided-- assuming the company’s shares returned to pre-2008 credit crisis levels.... Less than two weeks after the closing of LDK’s recent secondary, the company announced yet another financial offering. With dilutive deals potentially off the table in order to maintain the CEO’s majority ownership position, LDK announced a 1.2b RMB (181m USD) bond offering, bearing a staggering 10% annual interest rate. The high interest rate offered was surprising because much of the company’s existing debt averaged just 5-6% annual interest. Why would LDK have to offer such high interest rates to raise capital when months earlier the company announced a massive 60b RMB (8.9b USD) credit facility with China Development Bank (“CDB”)? Contrary to the views of some solar industry pundits, China is not subsidizing their solar industry with free or low interest loans. Chinese banks offer credit to Chinese solar companies with the same guidelines as for any other industry.... seekingalpha.com After collapsing in 2008, LDK has been in a horizontal range, $5-14.5 disclosure: no position. Set limit orders today, to short at $14.