Sunnova Energy International Inc (NYSE: NOVA) shares are trading lower Tuesday after the company announced a proposed private offering of convertible senior notes.
Sunnova said it intends to offer $425 million of convertible senior notes due 2028 in a private placement to qualified institutional buyers. The company also intends to grant the initial purchasers of the notes the option to purchase up to an additional $75 million aggregate principal amount of the notes within a 13-day period.
Sunnova also expects to enter into capped call transactions with one or more of the initial purchasers. The capped call transactions are expected to generally reduce the potential dilution to Sunnova's common stock upon any conversion of notes.
Sunnova said it intends to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions.
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NOVA Price Action: Sunnova has a 52-week high of $31.47 and a 52-week low of $12.47.
The stock was down 7.66% at $27.50 at press time, according to Benzinga Pro.
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