Microinverter manufacturer Enphase Energy has announced plans to raise US$1 billion through the issue of convertible senior notes.
The offer will comprise US$500 million of green convertible senior notes due 2026 and another tranche due in 2028, the proceeds from which will be used to repurchase portions of notes due in 2024 and 2025.
Furthermore, Enphase said it expected to enter into hedge transactions to reduce or offset any potential dilution to its stock upon conversion of the notes, or offset cash payments it may be required to make in excess of the total amount of notes, and some of the proceeds would be used to accommodate these payments.
Enphase added that any remaining net proceeds would be used for working capital and other corporate purposes.
The note issue comes a fortnight after the company reported its full-year results for 2020, shipping nearly 7 million microinverter units – a new record for the firm – contributing towards record annual revenues of US$264.8 million.
Enphase has also driven change within its contract manufacturing supply chain to allow it to supply up to 20 million microinverters this year should demand allow, a figure which would constitute a significant increase on its existing capacity.
The manufacturer has also been on something of an acquisition spree since the turn of the year, bolstering its solar design and services expertise with the purchase of Noida’s solar design services and software developer Sofdesk.