A-Power Energy Generation Systems, BVI-registered provider of distributed power generation systems in China and manufacturer of wind turbines, announced that it has signed conversion agreements with the holders of its convertible notes issued in June 2009. Pursuant to the Conversion Agreements, the BVI company and each of the holders of convertible notes have agreed to convert the aggregate principal amount and accrued interest of $37,5 million outstanding under the convertible notes into an aggregate of its 4.6 million common shares, using a conversion price of $10.21 per share, which is 96% of the original conversion price of the convertible notes of $10.6.
Common shares of A-Power Energy issuable upon conversion of the notes are freely tradable by the noteholders; each of them has entered into a Confirmation Letter with the company confirming certain procedural and other aspects of the transaction.
According to A-Power’s CEO Jinxiang Lu, as a result of this conversion the company strengthens its balance sheet by replacing debt with equity.