First Solar Surges on Credit Line, Contract

TEMPE, Ariz. (TheStreet) -- First Solar(FSLR Quote) announced today that it has netted a credit line to the tune of $300 million.

According to a press release issued today, the U.S.-based thin-film solar module maker said it entered into a revolving credit facility to be used broadly for "general corporate purposes," and more specifically to issue of letters of credit. The facility has a term of three years and was oversubscribed.

The company said nine financial operations entered into the deal with First Solar, with J.P. Morgan Securities and Bank of America/Merrill Lynch serving as the joint lead arrangers and book runners.

After the announcement and after the opening bell, First Solar shares were surging up $7.44, or more than 5.5%, at $141.85.

Just yesterday, First Solar announced a "memorandum of understanding" with the Chinese government to build what could be the biggest solar power plant so far.

Solar financing was also in headlines yesterday, as Trina Solar(TSL Quote) said it received a $304 million loan facility from a consortium of banks in China.

Around the solar sector on Wednesday morning, SunPower(SPWRA Quote) and Yingli Green Energy(YGE Quote) were rising up 2.3% and 0.9% each.

LDK Solar(LDK Quote) and Energy Conversion Devices(ENER Quote) were sliding 0.9% and 2.8%, respectively. Yesterday, Energy Conversion Devices skyrocketed by around 25% on rumors of a buyout. Canadian Solar(CSIQ Quote) shares were also losing ground, slipping 17cents at $16.53, while Suntech Power(STP Quote) ADS's were adding 15 cents at $16.05.

-- Written by Sung Moss in New York

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