Evergreen Solar has begun a $60 million public offering of its common stock, with Piper Jaffray acting as the sole underwriter. The PV company says it intends to use the proceeds to help fund a pair of its manufacturing sites and to cover certain corporate outlays. Evergreen also expects to grant an option to the underwriter to buy an additional $9 million of stock.
After deducting underwriting discounts and its own estimated expenses related to the offering, Evergreen plans to use the funds raised in the offering to pay for its 100-MW wafer-manufacturing facility in Wuhan, China. Assuming the Wuhan government provides or facilitates financing for approximately two-thirds of the initial expansion cost, that move is expected to require between $15 million and $20 million.
The company also plans to use another portion of the monies raised to buy capital equipment required for further expansion of its Midland, MI, silicon string-ribbon factory. Finally, the remainder of the funds will help Evergreen cover general corporate expenses, including working capital and possible payments to its Sovello joint venture (or Sovello’s lenders) that may be required.