Evergreen Solar to sell $300 million in notes

The solar panel producer also expects to grant the offering's underwriters a 30-day option to buy up to an additional $45 million of notes to the extent the underwriters sell more than $300 million of notes in the offering.

The notes will be convertible into cash up to their principal amount and shares of Evergreen's common stock for the remainder, if any, of the conversion value in excess of the principal amount.

The interest rate, conversion rate, conversion price, offering price and other terms of the notes will be determined when the notes are priced.

Lehman Brothers Inc. is the offering's sole underwriter.

Evergreen plans to use the net proceeds to complete and equip a solar panel manufacturing facility in Massachusetts, to begin construction of a facility that will produce heat-resistant string for wafers, and for general corporate purposes.

In connection with the offering, the company plans a capped call transaction with a Lehman Bros. affiliate to increase the effective conversion premium of the notes and reduce possible dilution upon conversion.

A capped call is an option with a pre-established profit cap.

Evergreen Solar shares fell 41 cents, or 3.5 percent, to $11.16 in premarket trading. they closed at $11.57 on Tuesday.