The offering consists of $825 million aggregate principal amount of 1.50% Series A Convertible Senior Notes due 2031 (the "Series A Notes") and $175 million aggregate principal amount of 0.00% Series B Convertible Senior Notes due 2031 (the "Series B Notes" and, together with the Series A Notes, the "Notes"). The Notes were sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act").The Series A Notes will bear interest at a rate of 1.50% per year, payable semi-annually in arrears, and the Series B Notes will not bear regular interest. Both series of Notes will mature on March 15, 2031, unless earlier converted, redeemed or repurchased in accordance with their terms.
Holders of the Series B Notes will have the right to require the Company to repurchase all or a portion of their Notes on March 15, 2027, at a repurchase price equal to 100% of the principal amount, plus any accrued and unpaid special interest, if any.
The initial conversion price for both series reflects a premium of 30% over the Company's common stock price at the time of pricing.
Management Commentary
"We are pleased with the successful completion of this offering, capitalizing on strong demand and a robust convertible securities market," said Doron Blachar, Chief Executive Officer of Ormat Technologies. "Strategically, this offering is a win for both the Company and our investors. We elected to execute this capital raise in the convertible market as it provided us with the best combination of low and no cash coupon, financial flexibility, and the ability to reduce equity dilution ...
