Yingli Green Energy Holding Company (YGE: sentiment, chart, options) said this morning that it's entered into a 5-year credit facility agreement with Deutsche Investitions (DEG) and the Netherlands Development Finance Company (FMO). Under the terms of the deal, DEG and FMO will lend YGE's Tianwei Yingli subsidiary up to $50 million to support capacity expansion. The loans will be guaranteed by YGE with an interest rate of LIBOR plus 3%.

Zongwei Li, Yingli's chief financial officer, said the deal "enhances our debt structure by enabling us to shift to longer-term indebtedness." Winfried Polte of the DEG added that YGE's "capacity expansion will create thousands of new jobs in China, thereby contributing to economic growth in this rapidly developing economy."

So far this morning, the Street has reacted negatively to the news. YGE is down about 4.7% at last check. The stock has now finished 3 consecutive weeks atop its 10-week moving average, but its 20-week trendline is providing a staunch ceiling to the security's progress.

Short sellers may be taking today's plunge as an excuse to ramp up their bearish bets. Short interest represents a healthy 15.3% of YGE's float, or 8 times its average daily volume. A continued increase in shorted shares could help keep the stock stifled under intermediate-term resistance.