Over the past week, links to Lehman Brothers will surface and companies will be forced to take hits because of it. This is what happens when a well established investment firm goes down the tubes like Lehman Brothers ( LEH ). This time, its effecting Evergreen Solar ( ESLR ).
Lehman underwrote a deal for Evergreen in July pricing $325 million of 4 percent senior notes due 2013. As part of the transaction, Evergreen agreed to lend Lehman 30.9 million shares for hedging transactions for up to five years.
Investor doubts about the fate of the loan sent Evergreen shares down $1.74 to $4.56 in Monday trading. The stock is now down 64 percent since the start of 2008. ESLR is down another .60 cents in pre market today 9/16 to $3.96 per share.