Ormat Technologies plans $750 million convertible notes offering

Ormat Technologies Inc. (NYSE: ORA) announced plans to offer $600 million of Series A Convertible Senior Notes and $150 million of Series B Convertible Senior Notes due 2031 in private offerings to qualified institutional buyers.

The geothermal energy company also expects to grant initial purchasers options to purchase up to an additional $90 million of Series A Notes and $22.5 million of Series B Notes within 13 days of issuance.

Both series of unsecured senior notes will mature on March 15, 2031, with interest payable semiannually on March 15 and September 15. The notes will be convertible under certain circumstances before November 15, 2030, and at any time thereafter until maturity. Upon conversion, Ormat will pay cash up to the principal amount and may deliver cash, common stock, or a combination for any remainder.

Holders of Series B Notes may require Ormat to repurchase their notes for cash on March 15, 2027, at 100% of principal amount plus accrued interest. Neither series will be redeemable by the company before March 20, 2029.

Ormat plans to use proceeds and $25 million cash on hand to repurchase a portion of its outstanding 2.50% convertible senior notes due 2027 through private transactions. The company also intends to use up to $25 million to repurchase common stock at the closing price on the pricing date, with remaining proceeds for general corporate purposes.

The offering has not been registered under the Securities Act of 1933 and will only be available to qualified institutional buyers under Rule 144A. Terms including interest rate and conversion rate will be determined through negotiations with initial purchasers based on market conditions.

You May Also Be Interested In

• IES Holdings (IESC) files mixed shelf
• Alpha Modus secures $2M from Streeterville in prepaid share deal
• Haverty Furniture expands credit facility to $100M, extends to 2031