MEMC Acknowledges Moody's Action
ST. PETERS, Mo., June 7, 2012 /PRNewswire/ -- MEMC Electronic Materials, Inc. (NYSE: WFR) acknowledges today's debt rating downgrade by Moody's Investors Services.
"While we are disappointed with Moody's decision, we have been proactively planning for this potential rating action in order to minimize its impact on the company," commented Brian Wuebbels, MEMC's Chief Financial Officer. "At the present time we are comfortable with the company's cash and liquidity position. As a result of the downgrade, we will be limited from making additional borrowings under our North American non-recourse revolving construction facility, but repayment of outstanding borrowings under the facility of approximately $110 million will not be accelerated. Cash needs in the second quarter which would have been met with this facility will now instead likely result in a reduction of our cash balance of approximately $15 million to $20 million."
MEMC is a global leader in semiconductor and solar technology. MEMC has been a pioneer in the design and development of silicon wafer technologies for over 50 years. With R&D and manufacturing facilities in the U.S., Europe, and Asia, MEMC enables the next generation of high performance semiconductor devices and solar cells. Through its SunEdison subsidiary, MEMC is also a developer of solar power projects and a worldwide leader in solar energy services. MEMC's common stock is listed on the New York Stock Exchange under the symbol "WFR." For more information about MEMC, please visit www.memc.com.
Certain matters discussed in this press release are forward-looking statements, including our belief that this action will likely impact our second quarter cash and liquidity by approximately $15 million to $20 million. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include concentrated project development risks related to large scale solar projects, including our ability to obtain and close debt and equity financings for such projects and the availability of attractive construction, project finance and other capital for SunEdison projects; changes in the pricing environment for silicon wafers and polysilicon, as well as solar power systems; market demand for our products and services; the availability and size of government and economic incentives to adopt solar power, including tax policy and credits and renewable portfolio standards; the ability to effectuate and realize the savings from the restructuring plan; our ability to maintain adequate liquidity and compliance with our debt covenants; the effect of any antidumping or countervailing duties imposed on photovoltaic cells and/or modules in connection with any trade complaints in the United States or elsewhere; existing or new regulations and policies governing the electric utility industry; our ability to convert SunEdison pipeline into completed projects in accordance with our current expectations; general economic conditions, including interest rates; the ability of our customers to pay their debts as they become due; failure of third-party subcontractors to construct and install our solar energy systems; seasonality or quarterly fluctuations in our SunEdison business; the impact of competitive products and technologies; inventory levels of our customers; supply chain difficulties or problems; interruption of production; good working order of our manufacturing facilities; our ability to reduce manufacturing and operating costs; assumptions underlying management's financial estimates; actions by competitors, customers and suppliers; changes in the retail industry; damage to our brand; acquisitions of pipeline in our Solar Energy segment; changes in financial market conditions; changes in foreign economic and political conditions; changes in technology; changes in currency exchange rates and other risks described in the company's filings with the Securities and Exchange Commission. These forward-looking statements represent the company's judgment as of the date of this press release. The company disclaims, however, any intent or obligation to update these forward-looking statements.
SOURCE MEMC Electronic Materials, Inc.