By Abigail W. Adams
Portland, Me., June 23 – Ormat Technologies Inc. priced an upsized $375 million of five-year green convertible notes after the market close on Wednesday at par with a coupon of 2.5% and an initial conversion premium of 30%, according to a company press release.
Pricing came at the midpoint of talk for a coupon of 2.25% to 2.75% and at the cheap end of talk for an initial conversion premium of 30% to 35%, according to a market source.
Barclays and J.P. Morgan Securities LLC were bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $56.25 million.
The initial size of the offering was $350 million with 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 entered into capped call transactions.
Net proceeds are expected to be $364.9 million or will be $419.7 million if the greenshoe is exercised in full.
Approximately $21.3 million, or $24.5 million if the greenshoe is exercised in full, will be used to cover the cost of the call spread.
Approximately $18 million of net proceeds will be used to repurchase stock at a purchase price of $69.44 in privately negotiated transactions and $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.
| Issuer: | Ormat Technologies Inc.
|
| Amount: | $375 million
|
| Greenshoe: | $56.25 million
|
| Issue: | Green convertible senior notes
|
| Maturity: | July 15, 2027
|
| Bookrunners: | Barclays and J.P. Morgan Securities LLC
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 30%
|
| Conversion price: | $90.27
|
| Conversion rate: | 11.0776
|
| Call options: | Non-callable until July 21, 2025 and then subject to a 130% hurdle
|
| Put options: | None
|
| Pricing date: | June 22
|
| Settlement date: | June 27
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 2.25% to 2.75% and initial conversion premium of 30% to 35%
|
| Stock symbol: | NYSE: ORA
|
| Stock price: | $69.44 at market close June 23
|
| Market capitalization: | $3.89 billion
|
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