Renewable Energy Corporation (REC) has announced a new US$110 million convertible bond offer and a partial repurchase offer of existing bonds as it looks to appease investors.
The company announced in July that it would split its PV module and polysilicon production into two separate companies.
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REC has been given 57% anti-dumping tariff by Chinese authorities, the largest of all polysilicon producers, while having the lowest costs due to its FBR technology.
According to a research note by Citigroup, the company’s bondholders were likely to resist attempts to expose a new standalone REC Silicon arm to these tariffs.
The company has announced it will offer a new convertible bond loan maturing in 2018 and will offer the partial repurchase and exchange of the existing 2014 convertible bond and the partial repurchase of the 2014, 2016 an 2018 bond loans.
The company hopes the restructuring will lower its interest costs. More details on the arrangements are available on the company’s website.
The separation of the company is subject to the approval of an extraordinary general meeting of the company and also of its bondholders.
The EGM is expected to take place in September while bondholders will be notified of their summons this week.
