Bitterfeld-Wolfen, 6 May 2009: Q-Cells SE (QCE; ISIN DE0005558662) intends to place up to approximately 85 million shares in Renewable Energy Corporation ASA (REC). The shareholding of Q-Cells (84,956,767 shares) amounts to approximately 17.2% of REC’s outstanding share capital. Citigroup, Morgan Stanley, ABG Sundal Collier, Dresdner Kleinwort/Commerzbank and UniCredit Group are acting as bookrunners for the placement. A final decision on pricing and sizing of the deal will be taken following the completion of the bookbuilding process.
The net proceeds from the sale of REC shares will be used to repay the current drawdown and will reduce the available commitment amount of the existing syndicated credit facility (EUR 500 million).
With this transaction Q-Cells expects a considerable reduction of its net debt and interest expense in the current financial year. The early debt repayment will lead to a reduction in interest expense of up to EUR 20 million for the current year. This will create substantial additional flexibility for the financing of the company’s planned investments and will enhance its options to finance longterm future growth.
REC will continue to be an important partner for Q-Cells following the transaction. The Norwegian company remains one of Q-Cells’ main suppliers of solar wafers. In addition, REC and Q-Cells are shareholders in the joint venture Sovello AG, together with Evergreen Solar.
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