Canadian Solar, a manufacturer of solar photovoltaic modules and silicon ingots and provider of solar energy and battery energy storage solutions, announced that it has entered into a definitive agreement with PAG, an investment firm in Asia Pacific.
As per the agreement, PAG will subscribe to $200 million in aggregate principal amount of convertible notes to be issued by the company. The Notes will bear an interest rate of 6% per annum, payable quarterly in arrears, and will mature on December 31, 2029.
The transaction is expected to close in the fourth quarter of 2024. Holders of the Notes also have the right to require the company to repurchase the Notes shortly after December 31, 2027.
The company will use this funding to optimize capital structure, repay debt, and invest in solar projects.
Dr. Shawn Qu, Chairman and CEO of Canadian Solar, said, “We are thrilled to partner with PAG, a seasoned investor in the solar industry. The Notes offer a flexible financing solution that aligns with our capital requirements and business objectives. This transaction paves the way for long-term strategic collaboration with PAG in solar and clean energy.”
These notes may be convertible into the company’s common shares at the holder’s option at an initial conversion price of $18.20, which is 23.4% above the last reported stock price of $14.75 per common share on the Nasdaq Global Select Market on August 16, 2024.
According to Mercom’s 1H and Q2 2024 Solar Funding and M&A report, total corporate funding in the solar sector, including venture capital/private equity (VC) funding, public market, and debt financing, in 1H 2024 totaled $16.6 billion, 10% lower year-over-year (YoY) compared to the $18.5 billion raised in 1H 2023.
Trina Solar, a solar module manufacturer, and smart energy solutions provider, recently secured a $235 million non-recourse senior secured term green loan facility from Standard Chartered to support the development, construction, and operation of a 1.35 million square foot solar photovoltaic manufacturing plant in Wilmer, Texas.
