RUN - Sunrun Inc. Announces Proposed Private Offering of $475 Million of Convertible Senior Notes | Benzinga
SAN FRANCISCO, Calif., Feb. 21, 2024 (GLOBE NEWSWIRE) -- Sunrun Inc. (NASDAQ:RUN) ("Sunrun") today announced that it intends to offer, subject to market conditions and other factors, $475 million aggregate principal amount of convertible senior notes due 2030 (the "notes") in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). Sunrun 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 beginning on, and including, the date on which the notes are first issued.
The notes will be senior, unsecured obligations of Sunrun and will accrue interest payable semiannually in arrears on March 1 and September 1 of each year, beginning on September 1, 2024. The notes will mature on March 1, 2030, unless earlier converted, redeemed or repurchased. The notes will be convertible into cash, shares of Sunrun's common stock or a combination of cash and shares of Sunrun's common stock, at Sunrun's election. The interest rate, initial conversion rate and other terms of the notes will be determined at the time of pricing of the offering.
Sunrun intends to use (i) a portion of the net proceeds from the offering to repurchase a portion of its 0% Convertible Senior Notes due 2026 (the "2026 notes") concurrently with the pricing of the offering in privately negotiated transactions effected with or through one of the initial purchasers of the notes or its affiliate, (ii) a portion of the net proceeds from the offering to pay the cost of the capped ...