SolarCity unveils USD-500m convertible bond offering
Sep 24, 2014 - US solar installer SolarCity Corp (NASDAQ:SCTY) said yesterday it will sell USD 500 million (EUR 389m) worth of asset-backed convertible senior notes, seeking to finance capped call transactions.
The convertible bonds, maturing in 2019, will be offered to qualified institutional investors, who will have the option to buy an additional USD 75 million worth of notes. The bonds will convert into SolarCity common stock at a price that has not yet been set. SolarCity will determine the interest rate of the bonds and other terms of the placement through negotiations with the initial buyers, it said.
SolarCity will allocate some of the net proceeds to finance the cost of certain capped call deals, while the rest will go for general corporate needs. Among these will be the strengthening of working capital, supporting capital expenditures and funding potential acquisitions.
The sale represents SolarCity’s fourth offering of asset-backed securities. In July, the US company 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.