North Coast Solar Stocks

June 23, 2008

China Sunergy Announces Private Offering of US$45 million of Convertible Senior Notes

Filed under: CSUN — Tags: , — Jason @ 5:11 pm

Monday June 23, 5:11 pm ET

NANJING, China, June 23 /Xinhua-PRNewswire/ — China Sunergy Co., Ltd. (CSUN) today announced that it plans to make a private offer of approximately US$45 million of its convertible senior notes due 2013. China Sunergy plans to grant the initial purchaser of the notes an option to purchase up to an additional US$5 million in aggregate principal amount of the notes to cover overallotments. China Sunergy anticipates using the proceeds for expansion of production capacity, enhancement of research and development, and general corporate purposes. The terms and timing of the offering have not been finalized.

Concurrently with the notes offering, China Sunergy also intends to enter into an ADS lending agreement with an affiliate of the initial purchaser of the notes, the ADS borrower, pursuant to which China Sunergy will lend up to approximately 3.75 million ADSs to the ADS borrower. The ADS borrower will offer and sell the borrowed ADSs and use the short position resulting from those sales to facilitate the establishment of hedge positions by investors in the notes offering. The exact number of ADSs to be offered will depend on the terms of the convertible senior notes offering and the hedging to be conducted by investors in those securities. The ADS borrower will be required to return the borrowed ADSs when the notes are no longer outstanding. China Sunergy will not receive any proceeds from the offering of the borrowed ADSs, but will receive a nominal lending fee from the ADS borrower.

The notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. The notes and China Sunergy’s American Depositary Shares issuable upon conversion of the notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities. Any offers of securities will be made only by means of a private offering memorandum.

This press release contains information about pending transactions, and there can be no assurance that these transactions will be completed.

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