Evergreen Solar announces recapitalization plan $ESLR 0

Evergreen Solar Inc., a manufacturer of String Ribbon solar powerproducts with its proprietary, low-cost silicon wafer technology,announced that its Board of Directors has approved a comprehensiverecapitalization plan to align the company’s capital structure with itscurrent business model and to better position Evergreen Solar for future growth.

The recapitalization plan, if fully executed, will:
* Substantially reduce the company’s outstanding indebtedness and annual interest expense;
* Exchange a substantial portion of the company’s existing convertibledebt for new debt with longer maturities and lower conversion prices;
* Create a capital structure that should provide greater incentive toconvertible debt holders to convert their notes into shares of thecompany’s common stock, which would further accomplish Evergreen Solar’s goal of substantially reducing outstanding debt; and
* Enhance thecompany’s flexibility to manage its business by eliminating certainrestrictive covenants and the security interests contained in existingdebt instruments.

The recapitalization plan is comprised of the following key elements:

* Exchange offers and a consent solicitation;
* Raising additional capital by seeking to sell up to $40,000,000aggregate principal amount of Evergreen Solar’s new 4 percentConvertible Subordinated Additional Cash Notes due 2020.
*Implementing the 1-for-6 reverse stock split previously approved byEvergreen Solar’s stockholders at the company’s annual meeting on July27, 2010, which will become effective prior to the closing of theexchange offers; and
* Increasing Evergreen Solar’s authorized shares of common stock from 120,000,000 to 240,000,000 shares (after givingeffect to the reverse stock split), in order to ensure that the companyhas sufficient shares available for future issuances.

EvergreenSolar plans to hold a Special Meeting of stockholders in early 2011 toask its stockholders to support the recapitalization plan.

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