STR cuts IPO pricing ahead of Friday launch

STR Holdings cuts price range for initial public offering ahead of expected Friday launch

• On 8:33 am EST, Friday November 6, 2009

NEW YORK (AP) -- STR Holdings Inc. cut its initial public offering price range just ahead of its Friday scheduled launch.

On Thursday solar company said it expects shares to price between $11 per share and $13 per share. In an earlier filing the company estimated the shares would price between $13 per share and $15 per share.

Total shares offered by the company and selling shareholders remains unchanged, but the balance tipped slightly toward the company. STR raised its offering to 3.3 million shares from 2.3 million shares. Selling shareholders cut their offering to 9 million shares from 10 million.

Assuming shares price at the midpoint of $12 per share, STR estimates net proceeds of $31.9 million, up from $25.4 million, when price expectations were higher but share volume was lower. The company will not receive any proceeds from the sale of stockholders' shares. Underwriters have the option to purchase up to an additional 1.845 million shares.

STR said it plans to use proceeds to pay off debt and fund working capital and general corporate purposes.

By going public, STR would launch the first solar initial public offering on a U.S. index in over a year.

STR makes solar module encapsulants and provides consumer product quality assurance services. Encapsulants are specialty sheets and film that hold a solar module together and protect the semiconductor circuit.

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