Sunrun Inc. Announces Pricing of Offering of $350 Million of Convertible Senior Notes with 50% Conversion Premium

About this update from Sunrun Inc.

[{"type":"text","content":"SAN FRANCISCO, Jan. 26, 2021 (GLOBE NEWSWIRE) -- Sunrun Inc. (Nasdaq: RUN) (“Sunrun”) today announced the pricing of $350 million aggregate principal amount of 0% convertible senior notes due 2026 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Sunrun also granted the initial purchasers of the notes the option to purchase up to an additional $50 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 sale of the notes is expected to close on January 28, 2021, subject to customary closing conditions. The notes will be senior, unsecured obligations of Sunrun, will not bear regular interest, and the principal amount of the notes will not accrete. The notes will mature on February 1, 2026, unless earlier converted, repurchased or redeemed. The initial conversion rate will be 8.4807 shares of Sunrun’s common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $117.91 per share of Sunrun’s common stock). The initial conversion price of the notes represents a premium of approximately 50% over the $78.61 per share last reported sale price of Sunrun’s common stock on the Nasdaq Global Select Market on January 25, 2021. 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. Sunrun will not be able to redeem the notes prior to February 6, 2024. On or after February 6, 2024, Sunrun may redeem the notes at its option if the last reported sale price of Sunrun’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading-day period (including the last trading day of such period) ending on and including the trading day immediately preceding the date on which Sunrun provides notice of redemption, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date. If a “fundamental change” (as defined in the indenture governing the notes) occurs at any time prior to the maturity...

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