Array Technologies Raises $345M in Convertible Notes Offering

By Tamara Parker • Sunday, June 29 10:22 • Permanent Link

Array Technologies, Inc. (NASDAQ: ARRY) recently closed an upsized offering of its 2.875% convertible senior notes, raising a total of $345 million in funds. The net proceeds from the offering amounted to approximately $334 million, with the company using $233 million to repay the outstanding balance of a term loan, $78 million to repurchase $100 million principal of 1.00% convertible senior notes due 2028, and $35 million to acquire capped calls elevating the conversion price to $12.74 per share.

The company's Chief Executive Officer, Kevin G. Hostetler, highlighted that the successful offering represents a significant milestone in their efforts to strengthen Array's capital structure and position the company for long-term growth. This move, according to Hostetler, aims to enhance the company's financial flexibility while minimizing potential dilution for shareholders.

H. Keith Jennings, the Chief Financial Officer, echoed Hostetler's sentiment, stating that they were pleased with the strong demand for the convertible notes offering, which allowed them to upsize the transaction and optimize their balance sheet. He emphasized that the repayment of their term loan affords them a full maturity extension of their revolving credit facility and that the capped call transactions provide important protection against dilution.

The net interest expense savings resulting from these transactions are expected to be approximately $9 million annually, enhancing free cash flow generation for the company.

Array Technologies, Inc., a leading global provider of solar tracking technology, is focused on providing solar solutions engineered to withstand harsh weather conditions, maximize energy production, and deliver value to its customers for the entire lifecycle of a project. The company's high-quality solar trackers, software platforms, and field services are designed to cater to utility-scale and distributed generation customers.

For more information on Array Technologies, Inc., please visit arraytechinc.com. As a result of these announcements, the company's shares have moved -0.92% on the market, and are now trading at a price of $6.44. For more information, read the company's full 8-K submission here.

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