Array Technologies prices $300M convertible debt offering

Array Technologies (NASDAQ:ARRY) has priced an upsized, private offering of $300M in aggregate principal amount of 2.875% convertible senior notes due 2031.

The notes will accrue interest at 2.875% per annum, payable semiannually in arrears, and will mature on July 1, 2031, unless earlier redeemed, repurchased or converted.

The initial conversion rate will be 123.1262 shares of Array's common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of ~$8.12 a share of the company’s common stock.

Array Technologies (NASDAQ:ARRY) has also granted the initial purchasers a 13-day option to purchase up to an additional $45M of the notes.

The company estimates net proceeds of around $290.4M or $334.1M if the initial purchasers exercise their option to purchase additional notes in full. It will used the proceeds to repay outstanding indebtedness under its term loan facility, to fund repurchases of ~$100M of its outstanding 1.00% Convertible Senior Notes due 2028, fund the cost of entering into the capped call transactions and any remaining proceeds for general corporate purposes.

The offering is expected to close on June 27, 2025, subject to the satisfaction of customary closing conditions.

ARRY +1.26% premarket.