Canadian Solar Inc. (Nasdaq: CSIQ) plans to make a private offer of approximately $75 million of its convertible senior notes due 2017, according to a release by the company.
Canadian solar says it intends to grant the initial purchaser of the notes an option to purchase up to an additional $11.25 million in aggregate principal amount of the notes to cover overallotments.
The company says it will use the net proceeds for working capital, general corporate purposes and potential future acquisitions. The interest rate, conversion rate, offering price and other terms and timing of the offering have not been finalized and will be determined by negotiations between Canadian Solar and the initial purchaser of the notes.
The notes will be convertible into common shares of Canadian Solar at an initial conversion rate of 50.6073 common shares per US$1,000 principal amount of notes, subject to adjustment under certain circumstances, which is equivalent to an initial conversion price of approximately $19.76 per share.
The notes will accrue interest at an annual rate of 6.0%. The notes will mature on December 15, 2017.
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