Chinese PV giant Trina Solar has begun selling $100 million in convertible notes and issuing additional American depositary shares (ADSs).
The company will grant underwriters a 30-day option to buy up to an additional $15 million in notes, which are in 2019. Trina said it would also loan 5 million ADSs under a concurrent offering to affiliates of the underwriters.
Trina added that lending the American depository shares would not result in share dilution. The size of the depository share offering would ultimately depend on the amount of the notes offering allocated to investors, who will be able to hedge their investment in the notes, it said.
The share borrowers will be required to return the borrowed shares by the maturity date of the notes October 15, 2019. The borrowers will receive all of the proceeds from the sale of the borrowed shares. While Trina will not receive any proceeds from the offering of the borrowed shares, it will receive a nominal lending fee from the borrowers.
In addition, Trina plans to sell another 2 million ADSs, each representing 50 ordinary Trina shares and has granted ADS underwriters a 30-day option to purchase as many as 1.05 million American depository shares.