By Abigail W. Adams
Portland, Me., May 31 – Enphase Energy Inc. priced $120 million of five-year convertible notes prior to the market open on Friday at par to yield 1% with an initial conversion premium of 30%.
Pricing came in line with talk for a fixed coupon of 1% and at the rich end of talk for an initial conversion premium of 25% to 30%, according to a market source.
Credit Suisse Securities (USA) LLC and Barclays are the bookrunners for the Rule 144A offering, which carries a greenshoe of $12 million.
The notes are contingently convertible until Dec. 1, 2023.
They will be settled in cash, shares or a combination of both at the company’s option.
In connection with the offering, the company will enter into convertible note hedge and warrant transactions.
The strike price on the warrant transactions is $25.23, which represents a premium of 60% over the last reported sales price of stock.
Net proceeds are expected to be $115.9 million, or $127.5 million if the greenshoe is exercised in full.
Approximately $5.9 million of the proceeds will be used to cover the cost of the call spread.
Proceeds will also be used to repurchase the outstanding $60 million of the company’s 4% convertible notes due 2023 in privately negotiated transactions.
Holders will receive an aggregate 10.8 million shares of common stock, in addition to a $6 million cash amount in the exchange, according to the news release.
Remaining proceeds will be used for general corporate purposes.
Enphase is a Fremont, Calif.-based global energy technology company.
| Issuer: | Enphase Energy
|
| Securities: | Convertible senior notes
|
| Amount: | $120 million
|
| Greenshoe: | $12 million
|
| Maturity: | June 1, 2024
|
| Bookrunners: | Credit Suisse Securities (USA) LLC and Barclays
|
| Coupon: | 1%
|
| Price: | Par
|
| Yield: | 1%
|
| Conversion premium: | 30%
|
| Conversion price: | $20.50
|
| Conversion rate: | 48.7781
|
| Call options: | None
|
| Put options: | None
|
| Pricing date: | May 31
|
| Settlement date: | June 5
|
| Distribution: | Rule 144A
|
| Talk: | Fixed coupon of 1% and an initial conversion premium of 25% to 30%
|
| Stock symbol: | Nasdaq: ENPH
|
| Stock price: | $15.77 at market close May 30
|
| Market capitalization: | $1.74 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
