US residential solar and battery storage company Sunnova Energy International announced its plans to issue convertible senior notes with an aggregate principal amount of up to $575 million. The bonds are due December 1, 2026, will be offered in a private placement subject to external factors. The total amount includes $500 million in bonds and an option for initial purchasers to buy up to an additional $75 million of the notes within 13 days of the issue of the bond. Further, the bonds will be convertible into cash or common shares in Sunnova at a par value of $0.0001. It can even be converted into a combination of cash and stock.
Once the bond issue is priced, the interest rate, initial conversion rate, and other terms of the bonds will be determined. Capped call transactions have also been planned with some of the initial purchasers to reduce the potential dilution of its common shares and cover any cash payments on top of the principal amount of bonds it is required to make.
Sunnova plans to use part of the net proceeds for debt repayment, general corporate needs, and the financing of eligible green projects, including investments in renewable energy and energy efficiency. The remainder will go into covering the cost of the capped call transactions.
Sunnova is a leader in residential solar, battery storage, and system protection services, with customers across the United States and its territories. Last month, the company announced that it will begin offering its services in Ohio and North Carolina. Both states will have access to Sunnova’s SunSafe solar + battery storage service, and +SunSafe add-on battery service, which will allow homeowners to maintain energy resiliency in the face of potential grid crises and rising electricity rates.