Yingli Taking the Money (YGE)

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Chinese solar panel maker Yingle Green Energy Holding Company Limited (NYSE:YGE) has taken a loan of $50 million from a credit line established earlier this year with ADM Capital and the China Export-Import Bank. ADM Capital receives 4,125 warrants to purchase Yingli shares in five pieces, beginning April 7, 2009, at a price of $5.64/share. The warrants expire on April 30, 2012, and at that time Yingli must purchase all unexercised warrants at $7/warrant. Yingli gets to decide if it will pay cash or issue shares to make the payment.

The new credit line with the bank gives Yingli access to long-term credit lines up to an aggregate amount of 1 billion RMB (about $147 million at today’s exchange rate). The credit line will replace all of Yingli’s short-term lines already provided by the bank.

Yingli’s shares are up about 2%, to $7.50/share. The 52-week range is $2.50-$27.96.

Paul Ausick
April 16, 2009