- Array Technologies (NASDAQ: ARRY) announces an upsized $300 million convertible note offering.
- The notes, due 2031, have a 2.875% interest rate, convertible at $8.12 per share, marked by a 27.5% premium.
- Proceeds will be used to repay debts, capped call transactions, and repurchase existing notes.
Array Technologies, Inc. (NASDAQ: ARRY) has announced an upsized offering of $300 million in convertible senior notes set to mature in 2031. These notes will accrue interest at an annual rate of 2.875%, payable semiannually, and are part of a strategic financial maneuver to improve the company's debt profile.
The notes will be convertible into common stock at a rate of 123.1262 shares per $1,000 principal amount, equating to an initial conversion price of approximately $8.12 per share. This conversion price is set at a 27.5% premium over the last reported sale price of ARRY's common stock.
Array Technologies expects net proceeds from the offering to be approximately $290.4 million, with the potential to increase to $334.1 million if an additional $45 million option for initial purchasers is exercised. The proceeds are allocated as follows: $150 million to repay existing term loan debt, $30.5 million for capped call transactions, and $78.3 million to repurchase $100 million of existing 1.00% convertible notes due 2028 at a discount. A portion of any remaining funds will be used for general corporate purposes.
The capped call transactions are designed to mitigate potential shareholder dilution upon conversion of the notes, with a cap price set at $12.74 per share, representing a 100% premium over the current share price. The offering, expected to close on June 27, 2025, reflects Array's proactive capital management strategy, maintaining financial flexibility while extending debt maturities under more favorable terms.
