Enphase Energy to Raise $1 Billion Via Convertible Notes Issue

A portion of the proceeds will be utilized to repurchase convertible notes due in 2024 and 2025

February 25, 2021


Enphase Energy, a supplier of micro inverter-based solar-plus-storage systems, has unveiled plans to raise $1 billion through the issuance of convertible senior notes.

The company will offer $500 million of green convertible senior notes due in 2026 and another $500 million due in 2028, Enphase Energy said in a statement. The notes will pay interest semiannually.

The company is expected to settle conversions of the notes in cash, its common stock shares, or a combination of cash and common stock shares.

A portion of the proceeds will be utilized to repurchase convertible senior notes due in 2024 and 2025. The remaining proceeds will be used for other general corporate purposes and working capital. An equal amount to the proceeds is expected to fund its ongoing green expenditure.

Enphase is expected to enter into convertible notes hedge transactions to reduce or offset the potential dilution to its common stock upon converting the relevant notes or offset cash payments required to make more than the principal amounts of notes.

According to Mercom Research, in March 2020, Enphase Energy completed the offering of $320 million aggregate principal amount of its 0.25% convertible senior notes due 2025 in a private placement.

Earlier this month, Enphase said it was acquiring DIN Engineering Services’ Solar Design Services business. It also announced the closing of its acquisition of Sofdesk, which provides an integrated software platform that helps simplify and enhance the end-to-end sales process across the residential solar industry.

According to Mercom’s 2020 Q4 and Annual Storage, Grid & Efficiency Funding and M&A Report, announced debt and public market financing for battery storage technology companies came to $5 billion in 22 deals in 2020 compared to $1.1 billion in 10 deals in 2019. This was the highest debt and public market financing raised by battery storage companies since 2014.

Harsh Shukla is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.

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