Array Technologies Closes Upsized Offering of Its 2.875% Convertible Senior Notes
Array Technologies (NASDAQ: ARRY) has successfully closed its upsized offering of $345 million in 2.875% convertible senior notes due July 2031. The net proceeds of approximately $334.1 million will be strategically deployed to strengthen the company's capital structure through multiple initiatives.
The company plans to use the proceeds to: 1) fully repay $232.8 million of term loan debt, 2) fund $35.1 million in capped call transactions, and 3) repurchase $100 million of 1.00% Convertible Senior Notes due 2028 for $78.3 million. The capped calls have an initial strike price of $8.12 per share and a cap of $12.74 per share.
These transactions are expected to generate approximately $9 million in annual net interest expense savings and enhance free cash flow generation.
Array Technologies (NASDAQ: ARRY) ha completato con successo un'offerta ampliata di 345 milioni di dollari in obbligazioni convertibili senior al 2,875% con scadenza luglio 2031. I proventi netti, pari a circa 334,1 milioni di dollari, saranno utilizzati strategicamente per rafforzare la struttura patrimoniale dell'azienda attraverso diverse iniziative.
L'azienda intende impiegare i fondi per: 1) rimborsare integralmente 232,8 milioni di dollari di debito a termine, 2) finanziare operazioni di capped call per 35,1 milioni di dollari, e 3) riacquistare 100 milioni di dollari di obbligazioni convertibili senior all'1,00% con scadenza 2028 per 78,3 milioni di dollari. Le capped call hanno un prezzo di esercizio iniziale di 8,12 dollari per azione e un tetto massimo di 12,74 dollari per azione.
Queste operazioni dovrebbero generare un risparmio annuo di circa 9 milioni di dollari sugli interessi netti e migliorare la generazione di flussi di cassa liberi.
Array Technologies (NASDAQ: ARRY) ha cerrado con éxito su oferta ampliada de 345 millones de dólares en bonos convertibles senior al 2,875% con vencimiento en julio de 2031. Los ingresos netos, aproximadamente 334,1 millones de dólares, se destinarán estratégicamente a fortalecer la estructura de capital de la compañía mediante varias iniciativas.
La empresa planea usar los fondos para: 1) pagar completamente 232,8 millones de dólares de deuda a plazo, 2) financiar transacciones de llamadas limitadas por 35,1 millones de dólares, y 3) recomprar 100 millones de dólares en Notas Convertibles Senior al 1,00% con vencimiento en 2028 por 78,3 millones de dólares. Las llamadas limitadas tienen un precio de ejercicio inicial de 8,12 dólares por acción y un límite de 12,74 dólares por acción.
Se espera que estas transacciones generen un ahorro anual aproximado de 9 millones de dólares en gastos netos por intereses y mejoren la generación de flujo de caja libre.
Array Technologies (NASDAQ: ARRY)는 2031년 7월 만기 2.875% 전환사채 증액 발행을 성공적으로 마감했습니다. 약 3억 3,410만 달러의 순수익은 회사의 자본 구조를 강화하기 위한 다양한 전략적 이니셔티브에 사용될 예정입니다.
회사는 자금을 다음과 같이 사용할 계획입니다: 1) 2억 3,280만 달러의 기한부 대출 전액 상환, 2) 3,510만 달러 규모의 캡 콜 거래 자금 조달, 3) 2028년 만기 1.00% 전환사채 1억 달러를 7,830만 달러에 재매입. 캡 콜의 초기 행사가격은 주당 8.12달러, 상한가는 주당 12.74달러입니다.
이 거래들은 연간 약 900만 달러의 순이자 비용 절감 효과를 창출하고 자유 현금 흐름을 개선할 것으로 예상됩니다.
Array Technologies (NASDAQ : ARRY) a clôturé avec succès son offre élargie de 345 millions de dollars en obligations convertibles senior à 2,875 % échéant en juillet 2031. Le produit net, d'environ 334,1 millions de dollars, sera déployé stratégiquement pour renforcer la structure financière de l'entreprise via plusieurs initiatives.
L'entreprise prévoit d'utiliser ces fonds pour : 1) rembourser intégralement 232,8 millions de dollars de dette à terme, 2) financer des transactions de calls plafonnés à hauteur de 35,1 millions de dollars, et 3) racheter 100 millions de dollars d'obligations convertibles senior à 1,00 % échéant en 2028 pour 78,3 millions de dollars. Les calls plafonnés ont un prix d'exercice initial de 8,12 dollars par action et un plafond de 12,74 dollars par action.
Ces opérations devraient générer environ 9 millions de dollars d'économies annuelles nettes sur les charges d'intérêts et améliorer la génération de flux de trésorerie libre.
Array Technologies (NASDAQ: ARRY) hat erfolgreich eine erweiterte Emission von 345 Millionen US-Dollar in 2,875% wandelbaren Senior Notes mit Fälligkeit Juli 2031 abgeschlossen. Die Nettoerlöse von etwa 334,1 Millionen US-Dollar werden strategisch eingesetzt, um die Kapitalstruktur des Unternehmens durch mehrere Initiativen zu stärken.
Das Unternehmen plant, die Erlöse wie folgt zu verwenden: 1) vollständige Rückzahlung von 232,8 Millionen US-Dollar Terminkreditschulden, 2) Finanzierung von 35,1 Millionen US-Dollar an gedeckten Call-Transaktionen und 3) Rückkauf von 100 Millionen US-Dollar 1,00% Wandelanleihen mit Fälligkeit 2028 für 78,3 Millionen US-Dollar. Die gedeckten Calls haben einen anfänglichen Ausübungspreis von 8,12 US-Dollar pro Aktie und eine Obergrenze von 12,74 US-Dollar pro Aktie.
Diese Transaktionen sollen jährliche Nettozinseinsparungen von etwa 9 Millionen US-Dollar erzielen und die freie Cashflow-Generierung verbessern.
- Expected annual net interest expense savings of $9 million
- Strategic repurchase of 2028 convertible notes at a $21.7 million discount
- Capped call transactions protect against dilution with $12.74 per share cap
- Full maturity extension achieved on revolving credit facility
- Enhanced financial flexibility through refinancing of higher-cost debt
- Potential dilution risk from new convertible notes if stock price exceeds cap
- Increased total debt through $345 million new note issuance
Insights
Array's debt refinancing reduces interest costs by $9M annually, extends maturities, and limits potential dilution through strategic capped calls.
Array Technologies has successfully completed a
First, Array is repaying approximately
Third, the company invested
The refinancing is expected to generate approximately
$345 million raised; approximately$334 million of net proceeds$233 million of term loan outstanding balance to be repaid with proceeds$78 million of proceeds used to repurchase$100 million principal of1.00% Convertible Senior Notes due 2028$35 million of proceeds used to acquire Capped Calls elevating conversion price to$12.74 per share
ALBUQUERQUE, N.M., June 27, 2025 (GLOBE NEWSWIRE) -- ARRAY Technologies, Inc. (NASDAQ: ARRY) (the “Company” or “ARRAY”) today announced the closing of its previously announced private offering of
Kevin G. Hostetler, Chief Executive Officer of ARRAY, said, “This successful offering marks a significant milestone in our ongoing efforts to strengthen ARRAY’s capital structure and position the company for long-term growth. By refinancing higher-cost debt and proactively managing our debt maturity profile, we are enhancing our financial flexibility while minimizing potential dilution for shareholders. These actions reflect our continued commitment to disciplined capital allocation and delivering sustainable value.”
H. Keith Jennings, Chief Financial Officer of ARRAY, added, “We are pleased with the strong demand for our convertible notes offering, which allowed us to upsize the transaction and optimize our balance sheet. The repayment of our term loan affords us the full maturity extension of our revolving credit facility, and the repurchase of a portion of our 2028 convertible notes at a discount generates meaningful shareholder value. Additionally, the capped call transactions provide important protection against dilution, aligning with our focus on prudent financial management.”
The net proceeds from the offering were approximately
The capped call transactions entered into in connection with the offering are expected to generally reduce potential dilution to the common stock upon conversion of the Notes or to offset any cash payments the Company is required to make in excess of the principal amount of converted Notes, as the case may be, with the reduction or offset subject to a cap initially equal to
Total annual net interest expense savings resulting from these transactions is expected to be approximately
About Array Technologies, Inc.
ARRAY Technologies, Inc. (NASDAQ: ARRY) is a leading global provider of solar tracking technology to utility-scale and distributed generation customers, who construct, develop, and operate solar PV sites. With solutions engineered to withstand the harshest weather conditions, ARRAY’s high-quality solar trackers, software platforms and field services combine to maximize energy production and deliver value to ARRAY’s customers for the entire lifecycle of a project. Founded and headquartered in the United States, ARRAY is rooted in manufacturing and driven by technology - relying on its domestic manufacturing, diversified global supply chain, and customer-centric approach to design, deliver, commission, train, and support solar energy deployment around the world. For more news and information on ARRAY, please visit arraytechinc.com.
Media Contact:
Nicole Stewart
505-589-8257
nicole.stewart@arraytechinc.com
Investor Relations Contact:
ARRAY Technologies, Inc.
Investor Relations
investors@arraytechinc.com
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “shall,” “expect,” “anticipate,” “believe,” “seek,” “target,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to the intended use of the net proceeds and the expected savings from the offering. Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond the Company’s control) that could cause actual results to differ materially from those set forth in the forward looking statements, including risks and uncertainties associated with market conditions, including market interest rates, the trading price and volatility of ARRAY’s common stock, the Company’s business and operations and results of financing efforts, including those described in more detail in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and subsequent reports and other documents on file with the U.S. Securities and Exchange Commission. The forward-looking statements included in this press release speak only as of the date of this press release. Except as required by law, the Company does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.
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