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August 20 (Renewables Now) - Private equity funds managed by Blackstone Energy Partners have committed to pour USD 350 million (EUR 299.6m) into US solar tracker maker Array Technologies Inc (NASDAQ:ARRY), with the option to invest more.
New Mexico-based Array Technologies announced it has agreed to sell up to USD 500 million of perpetual preferred stock to Blackstone Inc’s (NYSE:BX) energy-focused private equity business. At the initial closing, the investment will be USD 350 million, in exchange for which Blackstone will get 7.875 million shares of Array common stock, or around a 5.8% stake.
The solar tracker maker said it will use the funds from the initial closing to repay existing debt and support its expansion plans.
The Blackstone funds will have the option to subscribe for an additional USD 150 million worth of Array’s perpetual preferred stock by June 30, 2023. Following its initial commitment, Bilal Khan, Paulo Almirante and Gerrard Schmid have joined Array's board of directors.
The perpetual preferred stock will be entitled to cash dividends of 5.75% annually.
(USD 1.0 = EUR 0.856)