Ad hoc:Q-Cells SE:Ad hoc: Q-Cells SE launches comprehensive financing package and substantiates outlook

Monday, 27. September 2010 23:43
Q-Cells SE / / Ad hoc: Q-Cells SE launches comprehensive financing package and substantiates outlook processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.

   -     Q-Cells launches capital increase, issue of a new convertible bond and
offer to repurchase the 2007/2012 convertible bond to secure the medium-term
financing of the company at an early stage

    -      On the basis of the ongoing positive business development in the
third quarter, Q-Cells provides a more precise revenue forecast for the current
fiscal year

Bitterfeld-Wolfen, 27 September 2010 - Today the Management Board with the
consent of the Supervisory Board of Q-Cells SE launched a set of capital
measures to secure the medium-term financing of the company at an early stage.
The set of measures includes a capital increase against cash contributions and
the issue of a new convertible bond maturing in 2015, each with subscription
rights for the holders of common and preferred shares of the company, and an
offer to repurchase the existing 2007/2012 convertible bond.

The net proceeds from the capital increase and the issuance of the new
convertible bond are to be utilised primarily for repurchasing the existing
2007/2012 convertible bond. After implementing the repurchase offer, the
remaining amounts, if any, from the net proceeds will be used to strengthen the
balance sheet structure and liquidity of the company, to finance further growth
and to implement the initiated strategic repositioning.

The targeted proceeds from this transaction, together with the expected early
repayments from LDK, will further strengthen the cash position of the company.
The refinancing of the convertible bond 2007/2012 is thereby fully addressed and
the financial flexibility for the further implementation of the strategic
repositioning of Q-Cells and the related investments is significantly increased.
Subject to approval of the relevant securities prospectus by the Federal
Financial Supervisory Authority (BaFin), the subscription period for both the
rights issue and the new convertible bond is expected to begin on 29 September
2010. The repurchase offer is also expected to start on 29 September 2010.

Rights issue: Subscription rights trading expected from 30 September to 8
October 2010

The company is using the entire authorised capital to increase the share capital
of the company against cash contributions by EUR 58.8 million to EUR 176.3
million, issuing 58,765,955 new ordinary bearer shares with no par value, each
with a notional amount of EUR 1.00 in the share capital and with full dividend
entitlement as of 1 January 2010 ("New Shares").

The New Shares are to be offered at the subscription price to the holders of
common and preferred shares of the company by way of an indirect subscription
offer at a ratio of two old shares to one New Share. With the approval of the
Supervisory Board, the Management Board of Q-Cells SE will determine the
subscription price to be paid by the shareholders for each New Share by means of
a resolution which is expected to be taken on 28 or 29 September 2010. Subject
to approval of the relevant securities prospectus by the Federal Financial
Supervisory Authority, the subscription period for the offer is expected to
commence on 29 September 2010 and to end on 12 October 2010.

For details on the subscription of new common shares, please refer to the
subscription offer which is expected to be published on 28 September 2010 in the
electronic version of the Federal Gazette (Elektronischer Bundesanzeiger) and on
29 September 2010 in the Frankfurter Allgemeine Zeitung. It is expected that the
subscription rights will be traded in the period between 30 September 2010 and
8 October 2010 on the regulated market (floor trading) of the Frankfurt Stock
Exchange.

Determining the subscription price for the rights issue on the basis of an ABO
placement expected on 28 or 29 September 2010

On 28/29 September 2010, a private placement without subscription rights to
institutional investors is envisaged by way of an Accelerated Bookbuilt Offering
(ABO) of approximately 9.9 million New Shares based on the subscription rights
held by Good Energies (Solar Investments) S.à r.l., Luxembourg. After the ABO
placement, the subscription price will be determined and announced by the
company and the joint bookrunners. This will be done on the basis of the
purchase price per common share paid by the institutional investors in the ABO
placement and is expected to take place on or about 28 or 29 September 2010. The
subscription price, which will then be guaranteed by the banks after the
successful placement of the ABO, will be set 40% lower than the ABO price. On
the basis of the subscription price the net proceeds from the rights issue can
be determined finally.

Good Energies (Solar Investments) S.à r.l. has undertaken vis-à-vis the company
and the joint bookrunners to exercise all its remaining subscription rights. To
this end, Good Energies (Solar Investments) S.à r.l. intends to use its proceeds
from the ABO placement plus additional funds of between approximately EUR 22
million and EUR 25 million to finance the exercise of subscription rights. This
underscores the strong confidence Good Energies has in the Q-Cells management
team.

Issue of a new convertible bond with maturity in 2015

Q-Cells SE also plans to issue a convertible bond, using part of the company's
conditional capital. The convertible bond will be offered to shareholders of the
company for subscription by way of indirect subscription rights at a ratio of 4
to 1. Convertible bonds not subscribed for by shareholders will be placed
privately to institutional investors. No trading of the subscription rights is
planned. The offer involves convertible bonds due on 21 October 2015, which can
be converted into 29,394,293 common shares of Q-Cells SE. The expected issue
volume is approximately EUR 130 million to EUR 140 million. The final conditions
of the new convertible bond will be determined towards the end of the
subscription period of the new convertible bond on the basis of a bookbuilding
process which is expected to be implemented on 14/15 October 2010.

It is intended to apply for the convertible bond to be admitted to trading on
the Open Market (Freiverkehr) of the Frankfurt Stock Exchange. However, the
issue is not subject to such admission being granted.

Repurchase offer for the existing 2007/2012 convertible bond

The repurchase offer for the existing 2007/2012 convertible bond is expected to
start on 29 September 2010. It is currently expected to end on 21 October 2010
(closing on 28 October 2010). At the time of expiration of the repurchase offer
on 21 October 2010, the company will know the net proceeds from the capital
increase and the issue of the convertible bond. The company intends to use the
net proceeds from these transactions primarily for the repurchase offer.

Business development in the third quarter of 2010

The positive business development of the second quarter continued in the third
quarter, supported by ongoing high levels of demand and a stable price trend.
The fourth and last construction phase in Malaysia has been completely
commissioned during the third quarter, thus expanding the cell production
capacity as scheduled to 600 MWp. Particularly in the Cells business, Q-Cells
continued the positive trend of the second quarter.

In the modules business, there were supply delays due to quality and ramp-up
issues. In cooperation with the suppliers, Q-Cells has since largely solved
these problems. However, especially in July and August there was a considerable
reduction in revenues from the modules business.

Due to the positive demand situation and the price trend being more stable than
expected as well as contributions from the restructuring and the strategic
repositioning Q-Cells expects sales revenue for the third quarter to be above
the level of the second quarter, with EBIT approximately at the level of the
second quarter, despite start-up problems in the modules business.

More precise sales revenue forecast for the current fiscal year

For the fiscal year 2010, the company expects sales of approx. EUR 1.2 billion
to EUR 1.3 billion; the estimate of EUR 1.1 billion to EUR 1.3 billion
communicated so far was substantiated due to the continued strong sales
development in the third quarter. For the fourth quarter, the company also
expects, as in the two preceding quarters, a positive operating income (EBIT).
These expectations are based on continued positive and stable market and price
trends. Despite lower deliveries in the modules business in the third quarter,
Q-Cells continues to expect sales of 100-150 MWp modules for the current fiscal
year.

At the end of the first half of 2010, the cash position amounted to approx.
EUR 254 million. For the end of the current quarter (30 September 2010), the
company expects a higher amount of cash, which, on the basis of the assumptions
of the company concerning the business development, is expected to further
increase by the end of the year. This does not take into account the net
proceeds and the cash outflow in case of a successful implementation of the
repurchase offer. A factor contributing to this positive assessment is the
recent agreement with the supplier LDK which provides that LDK will pay Q-Cells
a total of USD 195 million until the end of the year. Of this total amount, USD
172.5 million have already been paid to Q-Cells.

It is expected that German version of the securities prospectus for the public
offers will be published on 28 September 2010. It will be available at no cost,
also at www.q-cells.de.

Contact information:
Q-Cells SE
OT Thalheim
Sonnenallee 17 - 21
06766 Bitterfeld-Wolfen
www.q-cells.com

Investor Relations:
Stefan Lissner
Phone: +49 - (0)3494 - 6699 10101
investor@q-cells.com

Corporate Communications:
Ina von Spies
Phone: +49 - (0)3494 - 6699 10121
presse@q-cells.com


Disclaimer

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persons who are outside the United Kingdom or (ii) to investment professionals
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(Financial Promotion) Order 2005 (the "Order") or (iii) high net worth
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person who is not a relevant person should not act or rely on this document or
any of its contents.

Stabilization/Regulation (EC) 2273/2003 and FSA.

This document is an advertisement for the purposes of applicable measures
implementing Directive 2003/71/EC (such Directive, together with any applicable
implementing measures in the relevant home Member State under such Directive,
the "Prospectus Directive"). A prospectus prepared pursuant to the Prospectus
Directive is expected to be published on September 28, 2010, following approval
by the German Federal Financial Supervisory Authority. Once published, the
prospectus can be obtained from Q-Cells SE, OT Thalheim, Sonnenallee
17-21, 06766 Bitterfeld-Wolfen, Germany.

In any EEA Member State other than Germany that has implemented Directive
2003/71/EC (together with any applicable implementing measures in any Member
State, the "Prospectus Directive") this communication is only addressed to and
directed at qualified investors in that Member State within the meaning of the
Prospectus Directive.

This notification does not constitute a prospectus. Only the prospectus contains
the information for investors required pursuant to the legal requirements.
Following approval by the German Federal Financial Supervisory Authority, it is
expected that the German version of the prospectus will be published on 28
September 2010 and will then be available free of charge on the website of
Q-Cells SE (www.q-cells.de) and on request in printed form from Q-Cells SE, OT
Thalheim, Sonnenallee 17-21, 06766 Bitterfeld-Wolfen, Germany.



[HUG#1447177]



--- End of Message ---

Q-Cells SE
OT Thalheim, Sonnenallee 17-21 Bitterfeld-Wolfen Germany

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