Sunnova to issue US$ 425m of convertible senior notes

Aug 17, 2022 12:12 PM ET
  • US domestic solar installer Sunnova intends to supply a US$ 425 million private placement of convertible senior notes due in 2028, to repay debts and also fund operating costs.
Sunnova to issue US$ 425m of convertible senior notes
Image: Sunnova

The positioning comes with a choice to purchase an additional US$ 75 million well worth of notes, which will be convertible into cash, shares of Sunnova's common stock or a combination of both.

Texas-based Sunnova intends to use a portion of the net proceeds from the offering for basic company functions, including financing of functioning funding, operating expenses, capital investment and paying off financial obligations.

The remainder of the earnings will certainly be utilized to pay the cost of capped phone call transactions, which it will certainly go into with one or more of the first purchasers.

The capped call transactions are expected to "decrease the prospective dilution to Sunnova's common stock upon any type of conversion of notes and/or counter any cash settlements Sunnova is needed to make in excess of the primary amount of transformed notes," the firm claimed in a news releases.

The business had its best ever quarterly sales in Q2, with revenue driven upwards by a solid customer backlog and raised setups. It added 17,300 new customers in the quarter, bringing the total amount to 225,000 since 30 June 2022.

However, the firm's net losses enhanced compared to Q1 this year, during which it had managed to make a dent in its bottom line in spite of a quarterly drop in customer additions.

In May, Sunnova additionally introduced a new power strategy offering new customers with a set percent discount rate on prevailing energy tariffs and also a 25-year market-based rate for their power in a bid to shield customers from volatile power prices.

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