Evergreen Solar (ESLR) To Offer $60M In Common Stock

Evergreen Solar, Inc. (Nasdaq: ESLR) commenced a $60 million public offering of its common stock. Evergreen Solar expects to grant to the underwriter a 30-day option from the date of the final prospectus supplement to purchase up to an additional $9 million of its common stock.

Evergreen Solar intends to use the net proceeds from the offering, after deducting underwriting discounts and Evergreen Solar’s estimated expenses related to the offering (1) to fund its planned initial 100 MW wafer manufacturing facility in Wuhan, China, which, assuming the Wuhan government provides or facilitates financing for approximately two-thirds of the initial expansion cost, is expected to require between $15 million and $20 million; (2) to purchase capital equipment required for further expansion of its Midland, Michigan string factory; and (3) for general corporate purposes, including working capital and possible payments to its Sovello joint venture (or Sovello’s lenders) that may be required under certain circumstances.

Piper Jaffray & Co. is acting as sole underwriter for the offering.