Canadian Solar has announced $200 million in private placement of secured convertible notes
The PAG deal will enable it to reduce its debt and invest in solar development projects
The management said this transaction is aligned with its capital requirements and business objectives
Canada-headquartered solar PV manufacturer Canadian Solar has secured $200 million in private placement of secured convertible notes with the leading investment firm in Asia Pacific, PAG.
It will enable the company to retain certain flexibility on draw downs, using the net proceeds to optimize its capital structure, repay certain indebtedness, and invest in solar development projects.
Under the deal reached, PAG will subscribe for $200 million in aggregate principal amount of convertible notes that Canadian Solar will issue.
These notes will have an interest rate of 6%/annum, and will be payable quarterly in arrears. The manufacturer said the notes will mature on December 31, 2029. These may also be repurchased by Canadian Solar after December 31, 2027.
The management said that the notes may be convertible into its common shares at the holder's option at an initial conversion price of $18.20/share, which represents a premium of approximately 23.4% above the Company's last reported stock price of $14.75/common share on the Nasdaq Global Select Market on August 16, 2024.
“The Notes offer us a flexible financing solution that aligns with both our capital requirements and business objectives. This transaction paves the way for long-term strategic collaboration with PAG in solar and in clean energy,” said Canadian Solar Chairman and CEO Dr. Shawn Qu.
Canadian Solar’s Corporate Senior VP Global Sales Thomas Koerner will attend TaiyangNews’ Solar Made in USA Conference on September 9, 2024, organized along with EUPD Research and RE+. Koerner will speak about successfully establishing cell and module production factories in the US. Register for the event here.
.png?w=50&fm=png){kind=logo}