Itron, Inc. (NASDAQ: ITRI), a global leader in energy and water management, has announced its intention to commence a private offering of $500.0 million aggregate principal amount of convertible senior notes due 2030. The company also plans to grant the initial purchasers of the notes an option to purchase an additional $75.0 million aggregate principal amount of notes.
The terms of the notes, including the interest rate and initial conversion rate, will be determined at the pricing of the offering. In connection with the pricing of the notes, Itron expects to enter into privately negotiated capped call transactions to reduce potential dilution to the company’s common stock upon any conversion of the notes.
The company intends to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions and up to approximately $100.0 million to repurchase shares of its common stock concurrently with the pricing of the offering of notes. Additionally, Itron may use a portion of the proceeds to fund the repayment, repurchase, or retirement of its 0.00% convertible senior notes due 2026 and for general corporate purposes.
The notes will be offered to qualified institutional buyers, and they have not been registered under the securities act. This press release does not constitute an offer to sell or a solicitation of an offer to buy the notes.
Itron's move to raise funds through the private offering of convertible senior notes indicates its strategic approach to capital structure and financial management. The company's decision to enter into capped call transactions and repurchase its common stock aligns with its efforts to optimize its capital allocation and potentially reduce dilution for shareholders. Following these announcements, the company's shares moved 0.7%, and are now trading at a price of $99.12. If you want to know more, read the company's complete 8-K report here.
