China Sunergy tumbles after debt offering priced

China Sunergy said the convertible senior unsecured notes due June 15, 2013, will be convertible to American Depositary Shares at an initial rate equivalent to $12.30 per ADS.

Shares fell $1.70, or 15.5 percent, to $9.30 in afternoon trading. In the past 52 weeks, shares have ranged from $4.83 to $19.23.

The company said it expects the transaction to close on July 1.

The initial purchaser of the notes, which carry a 4.75 percent annual interest rate, may buy as much as an additional $4.5 million of notes to cover overallotments.

China Sunergy said proceeds will be used to expand production capacity, boost research and development and for general corporate purposes.