REC restructuring moves step closer after new bond issue is oversubscribed

August 13, 2013
Facebook
Twitter
LinkedIn
Reddit
Email

Renewable Energy Corporation (REC) has announced its new US$110 million convertible bond offer was oversubscribed and is now closed.

The offer, announced yesterday, was perceived as an attempt by REC to gain some good faith with bondholders and other stakeholders ahead of key votes on the company’s planned restructuring.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The company announced in July that it would split its PV module and polysilicon production into two separate entities.

REC has been given a 57% anti-dumping tariff by Chinese authorities, the largest of all polysilicon producers, while having the lowest costs due to its FBR technology. The polysilicon side of REC’s business is in better health than its module business.

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 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 and 2018 bond loans.

The company hopes the restructuring will lower its interest costs.

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 on or around 6 September, according to REC.

Read Next

October 29, 2025
Greenvolt and European Energy have finalised financial deals for solar-plus-storage projects in Denmark and Latvia.
October 29, 2025
NextEra Energy Resources added 3GW of new renewable energy generation and storage capacity to its portfolio in the third quarter of 2025.
October 29, 2025
French firms TotalEnergies and EDF, with local partners, secured contracts for 400MW and 600MW solar projects in Saudi Arabia, supporting Vision 2030 renewable goals.
October 29, 2025
US solar manufacturer Corning has brought online its wafer production at its Michigan plant, during the third quarter of 2025.
October 28, 2025
GreenYellow plans to invest US$116 million in Poland over the next three years to expand its installed capacity and customer base.
Premium
October 28, 2025
BESS are 'the new player that everyone is talking about,' in Europe’s power purchase agreement (PPA) space, according to LevelTen.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 12, 2025
10am PST / 1pm EST
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 10, 2026
Frankfurt, Germany