Ormat talks $350 million five-year green convertible notes at 2.25%-2.75%, up 30%-35%

By Abigail W. Adams

Portland, Me., June 21 – Ormat Technologies Inc. plans to price $350 million of five-year green convertible notes after the market close on Wednesday with price talk for a coupon of 2.25% to 2.75% and an initial conversion premium of 30% to 35%, according to a market source.

Barclays and J.P. Morgan Securities LLC are bookrunners for the Rule 144A and Regulation S offering, which carries a greenshoe of $52.5 million.

The notes are non-callable until July 21, 2025 and then subject to a 130% hurdle.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to fund the cost of the call spread, up to $25 million will be used to repurchase common stock in privately negotiated transactions, $221.9 million will be used to fund the prepayment of the company’s series 3 bonds with remaining proceeds to be sued for general corporate purposes.

Ormat Technologies is a Reno, Nev.-based geothermal energy company.

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