SolarCity prices USD-500m convertible bond offering
Sep 25, 2014 - US solar installer SolarCity Corp (NASDAQ:SCTY) said today the convertible senior notes under its recently-unveiled offering worth USD 500 million (EUR 393m) will bear an interest of 1.625% per year.
The unsecured notes will pay interest semi-annually, starting from May 1, 2015. The bonds will mature on November 1, 2019 and will convert into SolarCity common stock at a rate of 11.9720 shares for USD 1,000 worth of notes. This is equal to a conversion price of about USD 83.53 per share.
As part of the placement, SolarCity will offer the bonds to qualified institutional investors, who will have the option to buy an additional USD 75 million worth of notes. The firm expects to raise USD 488.1 million in net proceeds from the sale to initial purchasers, some USD 57.6 million of which will go to finance the cost of certain capped call deals. The rest of the funds will be used for general corporate needs, including working capital requirements, capital expenditures and potential acquisitions.
In July, SolarCity raised USD 201.5 million from selling solar asset-backed notes, divided into two classes.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.