Shenyang, China-based A-Power Energy Generation Systems Ltd., a provider of distributed power generation systems, has signed conversion agreements with the holders of its convertible notes.
Pursuant to the conversion agreements, the company and each of the noteholders has agreed to convert the aggregate principal amount and accrued interest outstanding under the convertible notes, together with make-whole amounts, into an aggregate of 4.5 million common shares using a conversion price per share set at $10.212, which is 96% of the original conversion price of $10.63.
‘We are pleased that the holders of these convertible notes have elected to convert their notes in full,’ said Jinxiang Lu, chief executive officer, in a statement. ‘As a result of this conversion of the convertible notes, the company strengthens its balance sheet by replacing debt with equity.’
Last October, A-Power Energy announced that it would supply 240 2.5 MW turbines for a 600 MW wind farm in Texas as part of a partnership between developer Cielo Wind and Shenyang Power Group. A-Power is expected to start shipping the turbines in March 2010 and says it will complete delivery by March 2011.