CANADIAN SOLAR PRICES OFFERING OF US$200 MILLION CONVERTIBLE SENIOR NOTES DUE 2031

Canadian Solar (NASDAQ: CSIQ) priced a US$200.0 million offering of convertible senior notes due Jan 15, 2031, with an initial purchasers' option for an additional US$30.0 million.

Rhea-AI Summary

Canadian Solar (NASDAQ: CSIQ) priced a US$200.0 million offering of convertible senior notes due Jan 15, 2031, with an initial purchasers' option for an additional US$30.0 million. Expected close is on or about Jan 13, 2026. Net proceeds are expected to be approximately US$194.6 million (or ~US$223.9 million if option exercised) to fund U.S. manufacturing, battery energy storage and solar value‑chain investments, and for working capital. Notes accrue interest at 3.25% per annum, payable semi‑annually. Initial conversion rate is 36.1916 shares per US$1,000 (conversion price ~US$27.63, ~42.5% premium to the Jan 8, 2026 close of US$19.39). Redemption and repurchase features apply under specified conditions.

Positive

• Net proceeds of approximately US$194.6M
• Upsize option increases proceeds to ~US$223.9M
• Proceeds designated for U.S. manufacturing and battery storage investments

Negative

• Initial conversion price of US$27.63 implies share issuance if converted
• Notes accrue 3.25% interest, increasing financing cost through 2031
• Potential dilution if purchasers convert or option is exercised

Argus Jan 9 session

-0.05% close to close Open Argus

Details

News Market Reaction – CSIQ

On Jan 9, the day this news came out, CSIQ closed 0.05% below the previous close.

Data tracked by StockTitan Argus for the Jan 9 session.

Market Context

This announcement detailed pricing for CSIQ’s US$200 million convertible senior notes, including a 3...

Analysis

This announcement detailed pricing for CSIQ’s US$200 million convertible senior notes, including a 3.25% coupon and an initial conversion price of US$27.63 per share, a 42.5% premium to $19.39. It followed the earlier proposed offering on Jan 7, 2026. Investors monitoring this financing may focus on how efficiently the estimated US$194.6–223.9 million in net proceeds is deployed into U.S. manufacturing, battery storage, and solar value-chain investments, alongside execution of the existing project backlog.

Key Figures

Convertible notes principal: US$200 million Over-allotment option: US$30 million Net proceeds (base): US$194.6 million +5 more

Convertible notes principal

US$200 million

Aggregate principal amount of notes due 2031

Over-allotment option

US$30 million

Additional principal amount available to initial purchasers

Net proceeds (base)

US$194.6 million

Estimated net proceeds excluding option exercise

Net proceeds (full option)

US$223.9 million

Estimated net proceeds if option fully exercised

Coupon rate

3.25% per annum

Interest on notes, payable semi-annually

Conversion rate

36.1916 shares per US$1,000

Initial conversion rate for the notes

Conversion price

US$27.63 per share

Initial conversion price of common shares

Conversion premium

42.5%

Premium to last reported share price of US$19.39 on Jan 8, 2026

Historical Context

5 past events · Latest: Jan 07

5 events

1. Jan 07

   Convertible notes offering

   24h Move

   -6.2%

   Announced proposed US$200M convertible senior notes due 2031.

2. Dec 24

   Leadership changes

   24h Move

   +1.8%

   Appointed new President and COO to support North American expansion.

3. Dec 17

   Storage project win

   24h Move

   +0.5%

   e-STORAGE to deliver 204 MW / 408 MWh BESS in South Australia.

4. Dec 02

   UK project approval

   24h Move

   -6.2%

   Recurrent Energy secured DCO for large UK solar-plus-storage project.

5. Dec 01

   US manufacturing shift

   24h Move

   +1.5%

   Formed CS PowerTech with 75.1% stake to oversee U.S. manufacturing.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible senior notes, rule 144a, senior unsecured obligations

3 terms

convertible senior notes financial

"announced the pricing of its previously announced offering of US$200 million aggregate principal amount of convertible senior notes due 2031"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

rule 144a regulatory

"private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

senior unsecured obligations financial

"the Notes will be senior unsecured obligations of the Company and will accrue interest"

Senior unsecured obligations are loans or bonds that a company promises to pay back with its own money, but without any special guarantees or collateral. If the company runs into financial trouble, these debts are paid after other debts with priority, meaning they are less protected but still important. They matter because they show how risky it is to lend money to a company.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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KITCHENER, ON, Jan. 9, 2026 /PRNewswire/ -- Canadian Solar Inc. (NASDAQ: CSIQ) (the "Company", or "Canadian Solar") today announced the pricing of its previously announced offering of US$200 million aggregate principal amount of convertible senior notes due 2031 (the "Notes"). The Notes were offered in a private offering 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 Company has granted the initial purchasers in the offering an option to purchase, for settlement within a period of 13 calendar days from, and including, the date the Notes are first issued, up to an additional US$30 million aggregate principal amount of the Notes. The Company expects to close the offering of the Notes on or about January 13, 2026, subject to the satisfaction of customary closing conditions.

The Company estimates that net proceeds from the offering will be approximately US$194.6 million (or approximately US$223.9 million if the initial purchasers exercise in full their option to purchase additional Notes), after deducting the initial purchasers' discount and estimated offering expenses payable by the Company. The Company plans to use the net proceeds from the offering for investments in U.S. manufacturing, and in the value chain supporting battery energy storage and solar power solutions, as well as for working capital and general corporate purposes.

When issued, the Notes will be senior unsecured obligations of the Company and will accrue interest at a rate of 3.25% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2026. The Notes will mature on January 15, 2031, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date.

Holders of the Notes may convert all or part of their Notes at their option at any time prior to the close of business on the third business day immediately preceding the maturity date. Upon conversion, the Company will deliver to such converting holders, a number of the Company's common shares equal to the applicable conversion rate as of the relevant conversion date, together with a cash payment in lieu of any fractional share. The initial conversion rate of the Notes is 36.1916 common shares of the Company per US$1,000 principal amount of Notes, which represents an initial conversion price of approximately US$27.63 per common share. The initial conversion price represents a premium of approximately 42.5% over the last reported sale price on the NASDAQ Global Select Market of US$19.39 per common share of the Company on January 8, 2026. The conversion rate and conversion price for the Notes will be subject to adjustments upon the occurrence of certain events.

On or after January 22, 2029, the Company may redeem for cash all or part of the Notes, at its option, if the last reported sale price of the Company's common shares has been at least 130% of the conversion price then in effect on each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately prior to the date the Company provides notice of redemption. In addition, the Notes will be redeemable, in whole and not in part, at the Company's option at any time following the occurrence of certain tax related events. The redemption price in the case of a tax redemption or an optional redemption will be equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the related redemption date.

Holders of the Notes may require the Company to repurchase all or part of their Notes in cash in the event of certain fundamental changes. The repurchase price will equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date.

The Notes and the common shares deliverable upon conversion of the Notes have not been and will not be registered under the Securities Act or any securities laws of any other place and may not be offered or sold absent registration or an applicable exemption from registration requirements.

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be any offer, solicitation or sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

About Canadian Solar Inc.

Canadian Solar is one of the world's largest solar technology and renewable energy companies. Founded in 2001 and headquartered in Kitchener, Ontario, the Company is a leading manufacturer of solar photovoltaic modules; provider of solar energy and battery energy storage solutions; and developer, owner, and operator of utility-scale solar power and battery energy storage projects. Over the past 24 years, Canadian Solar has successfully delivered nearly 170 GW of premium-quality, solar photovoltaic modules to customers across the world. Through its subsidiary e-STORAGE, Canadian Solar has shipped over 16 GWh of battery energy storage solutions to global markets as of September 30, 2025, boasting a $3.1 billion contracted backlog as of October 31, 2025. Since entering the project development business in 2010, Canadian Solar has developed, built, and connected approximately 12 GWp of solar power projects and 6 GWh of battery energy storage projects globally. Its geographically diversified project development pipeline includes 25 GWp of solar and 81 GWh of battery energy storage capacity in various stages of development. Canadian Solar has been publicly listed on the NASDAQ since 2006.

Safe Harbor/Forward-Looking Statements

Certain statements in this press release are forward-looking statements, including statements regarding the expected consummation of the Notes offering and the terms of the Notes, that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "may", "will", "expect", "anticipate", "future", "ongoing", "continue", "intend", "plan", "potential", "prospect", "guidance", "believe", "estimate", "is/are likely to" or similar expressions, the negative of these terms, or other comparable terminology. These forward-looking statements include, among other things, our expectations regarding global electricity demand and the adoption of solar and battery energy storage technologies; our growth strategies, future business performance, and financial condition; our transition to a long-term owner and operator of clean energy assets and expansion of project pipelines; our ability to monetize project portfolios, manage supply chain fluctuations, and respond to economic factors such as inflation and interest rates; our outlook on government incentives, trade measures, regulatory developments, and geopolitical risks; our expectations for project timelines, costs, and returns; competitive dynamics in solar and storage markets; our ability to execute supply chain, manufacturing, and operational initiatives; access to capital, debt obligations, and covenant compliance; relationships with key suppliers and customers; technological advancement and product quality; and risks related to intellectual property, litigation, and compliance with environmental and sustainability regulations. Other risks were described in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 30, 2025. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar undertakes no duty to update such information, except as required under applicable law.

CANADIAN SOLAR INC. INVESTOR RELATIONS CONTACT 
Wina Huang
Investor Relations
Canadian Solar Inc.
investor@canadiansolar.com

View original content:https://www.prnewswire.com/news-releases/canadian-solar-prices-offering-of-us200-million-convertible-senior-notes-due-2031-302657138.html

SOURCE Canadian Solar Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What amount did Canadian Solar (CSIQ) raise with the convertible notes on Jan 9, 2026?

Canadian Solar priced US$200 million of convertible notes with a US$30 million upsized option.

How much net proceeds will CSIQ receive from the convertible notes offering?

Net proceeds are expected to be approximately US$194.6 million, or ~US$223.9 million if the option is exercised in full.

What are the key financial terms of the CSIQ notes due 2031?

The notes bear 3.25% annual interest, pay semi‑annually, and mature on Jan 15, 2031.

What is the initial conversion rate and conversion price for CSIQ's January 2026 notes?

Initial conversion rate is 36.1916 shares per US$1,000, equal to a conversion price of about US$27.63 per share.

How will Canadian Solar use the proceeds from the CSIQ convertible notes?

Proceeds are planned for U.S. manufacturing, investments in battery energy storage and solar value‑chain, plus working capital.

When can Canadian Solar redeem the convertible notes early?

On or after Jan 22, 2029, the company may redeem if the share price is ≥130% of the conversion price over specified trading‑day tests.