UPDATE - Sunnova upsizes convertible senior notes offering to USD 500m

US residential solar and battery storage company Sunnova Energy International Inc (NYSE:NOVA) has expanded the target of its recent offering of convertible senior notes, now seeking to raise USD 500 million (EUR 491.3m), it said on Tuesday.

The private placement was launched earlier this week and initially aimed to provide Sunnova with USD 425 million in fresh funds. The company has upsized the transaction and granted the initial purchasers an option to buy an additional amount of notes for a total of USD 100 million, instead of USD 75 million.

The senior unsecured notes mature on February 15, 2028, and bear an interest of 2.625%, starting from February 25, 2023. They will be be convertible into cash, shares of Sunnova’s common stock, or a combination of both. The initial conversion rate is set at 29.2039 shares of Sunnova’s common stock, equal to a price of USD 34.24 per share.

The US firm expects to raise net proceeds of USD 487.1 million from the transaction, of which some USD 40.4 million will go to pay costs related to several capped call transactions seen to reduce the potential dilution to its common stock. The remaining funds will be allocated for general corporate needs, including working capital requirements, operating costs, capital expenditures and debt repayment.

The securities are being offered to qualified institutional investors. The sale is expected to be completed on August 19.

(USD 1.0 = EUR 0.983)

Choose your newsletter by Renewables Now. Join for free!