Sunrun Inc. Announces Proposed Private Offering of $350 Million of Convertible Senior Notes

About this update from Sunrun Inc.

[{"type":"text","content":"SAN FRANCISCO, Jan. 25, 2021 (GLOBE NEWSWIRE) -- Sunrun Inc. (Nasdaq: RUN) (“Sunrun”) today announced that it intends to offer, subject to market conditions and other factors, $350 million aggregate principal amount of 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 intends to grant 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 notes will be senior, unsecured obligations of Sunrun and will accrue interest payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2021. The notes will mature on February 1, 2026, 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 a portion of the net proceeds from the offering to pay the cost of the capped call transactions described below. Sunrun intends to use the remainder of the net proceeds to repay outstanding debt and for other general corporate purposes, which may include working capital, capital expenditures, and potential acquisitions and future strategic transactions. However, it has not designated any specific uses and has no definitive agreements with respect to any material acquisition or strategic transaction. In connection with the pricing of the notes, Sunrun expects to enter into capped call transactions (the “capped call transactions”) with one or more of the initial purchasers and/or their respective affiliates and/or other financial institutions (the “option counterparties”). The capped call transactions are expected generally to reduce or offset potential dilution to Sunrun’s common stock upon any conversion of notes and/or offset any cash payments Sunrun is required to make in excess of the principal amount of converted notes, as the case may be, with such reduction and/or offset subject to a c...

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