Ormat Technologies Inc. (NYSE: ORA) priced a private offering of $875 million in convertible senior notes, increasing the size from the previously announced $750 million total. The offering consists of $725 million in 1.50% Series A Convertible Senior Notes due 2031 and $150 million in 0.00% Series B Convertible Senior Notes due 2031.

The company granted initial purchasers options to purchase up to an additional $100 million of Series A Notes and $25 million of Series B Notes within 13 days of issuance. The sale is expected to close March 20, 2026.

Both series of notes will be convertible at an initial conversion price of approximately $140.40 per share, representing a 30% premium over the March 17, 2026 closing stock price on the New York Stock Exchange. The conversion rate is 7.1225 shares per $1,000 principal amount for both series.

Series A Notes will pay 1.50% annual interest semiannually, while Series B Notes bear no regular interest. The notes cannot be redeemed by the company before March 20, 2029, and holders of Series B Notes may require repurchase on March 15, 2027.

Ormat estimates net proceeds of approximately $853.6 million after fees. The company plans to use approximately $287.9 million of proceeds plus $25 million cash on hand and issue about 0.6 million shares to repurchase approximately $285.9 million of its 2.50% convertible senior notes due 2027. An additional $25 million will repurchase shares at $108.00 per share, with remaining proceeds for general corporate purposes.

The notes were offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933.