Array Technologies, Inc. announced the closing of its private offering of $345 million aggregate principal amount of 2.875% convertible senior notes due July 2031. The offering was upsized from an initial $250 million and included the full exercise of an option for an additional $45 million in notes by the initial purchasers.
The net proceeds from the offering, approximately $334.1 million, were strategically utilized to strengthen Array's balance sheet. A portion, along with $12.1 million cash on hand, was used to fully repay the outstanding $232.8 million under its term loan facility, and approximately $35.1 million funded capped call transactions.
Additionally, Array repurchased approximately $100 million in aggregate principal amount of its outstanding 1.00% Convertible Senior Notes due 2028 for approximately $78.3 million in cash. These actions are expected to result in approximately $9 million in annual net interest expense savings and extend the average debt maturity, while the capped call transactions provide dilution protection by raising the effective conversion price from $8.12 to $12.74 per share.
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