Array Technologies, Inc. (NASDAQ: ARRY) has announced its intention to offer $250 million in aggregate principal amount of convertible senior notes due 2031 in a private placement. The company also plans to grant the initial purchasers of the notes an option to purchase up to an additional $37.5 million aggregate principal amount of notes.
The notes will be senior, unsecured obligations of Array and will accrue interest payable semiannually in arrears. The interest rate, the initial conversion rate, and certain other terms of the notes will be determined at the time of pricing of the offering.
Array intends to use the net proceeds from the offering for several purposes, including repaying $150 million of the outstanding indebtedness under its term loan facility, funding the costs of capped call transactions, and for general corporate purposes, which may include additional repayments or repurchases of outstanding indebtedness.
In connection with the pricing of the notes, Array expects to enter into privately negotiated capped call transactions to cover the number of shares of Array’s common stock initially underlying the notes sold in the offering. These transactions are expected to reduce potential dilution to Array’s common stock upon conversion of any notes and/or offset any cash payments Array is required to make in excess of the principal amount of converted notes, subject to a cap.
Furthermore, Array may enter into separate and individually negotiated transactions with holders of its 1.00% convertible senior notes due 2028 to repurchase for cash a portion of the outstanding existing convertible notes, using a portion of the net proceeds from the offering.
It's important to note that neither the notes nor the shares of Array’s common stock potentially issuable upon conversion of the notes have been, or will be, registered under the securities act, the securities laws of any other jurisdiction or any state securities laws and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the securities act and applicable state laws.
Array Technologies, Inc., is a leading global provider of solar tracking technology to utility-scale and distributed generation customers. The company's solutions are engineered to withstand harsh weather conditions and maximize energy production for the entire lifecycle of a project. Array is headquartered in the United States and relies on its domestic manufacturing, diversified global supply chain, and customer-centric approach to support solar energy deployment globally. As a result of these announcements, the company's shares have moved -0.14% on the market, and are now trading at a price of $7.39. For the full picture, make sure to review Array Technologies's 8-K report.
