Array Technologies Shares Fall With Plans for Convertible Notes Offering
01 December 2021 - 3:30AM
Dow Jones News
By Robb M. Stewart
Array Technologies Inc.'s shares were under pressure Tuesday
after the solar-tracker technology company proposed a $325 million
convertible bond offering to help fund the planned acquisition of
Soluciones Tecnicas Integrales Norland S.L.
In morning trading, the stock was 11% lower at $20.33, for a
drop of more than 50% since the end of last year.
Array late Monday said it planned to offer convertible senior
notes due 2028 in a private placement and to grant the initial
purchasers of the notes an option to buy in a 13-day period up to
an additional $48.75 million of notes.
If the initial investors take up the option, the company said it
would enter into additional capped call transactions with the
option counterparties. If its deal with STI falls through, Array
said it will use the proceeds from the offering to pay the cost of
capped call transactions and for general corporate purposes.
With the expected pricing of the notes, Array said it expects to
enter into privately negotiated capped call transactions with one
or more of the initial purchasers and other financial institutions,
which it anticipates will reduce potential dilution to its stock
with the conversion of any notes and/or offset any cash payments
the company is required to make in excess of the principal amount
of converted notes.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
November 30, 2021 11:15 ET (16:15 GMT)
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