GUELPH,
ON, Aug. 19, 2024 /PRNewswire/ -- Canadian
Solar Inc. (the "Company" or "Canadian Solar") (Nasdaq: CSIQ) today
announced that it has entered into a definitive agreement with PAG,
a leading investment firm in Asia
Pacific, pursuant to which PAG will subscribe for
US$200 million in aggregate principal
amount of convertible notes (the "Notes") to be issued by the
Company. The transaction is expected to close in the fourth quarter
of 2024, subject to closing conditions. The Company will retain
certain flexibility on draw downs, using the net proceeds to
optimize its capital structure, repay certain other indebtedness
and invest in solar development projects.
The Notes will bear an interest rate of 6% per annum, payable
quarterly in arrears, and will mature on December 31, 2029. Holders of the Notes also have
the right to require the Company to repurchase the Notes shortly
after December 31, 2027. Subject to
the terms of the Notes, the Notes may be convertible into the
Company's common shares at the holder's option at an initial
conversion price of US$18.20, which
represents a premium of approximately 23.4% above the Company's
last reported stock price of US$14.75
per common share on the Nasdaq Global Select Market on August 16, 2024. The conversion rate will be
subject to market customary adjustments. The Notes will be secured
against certain pledges provided by the subsidiaries of the
Company.
Dr. Shawn Qu, Chairman and CEO
of Canadian Solar, said, "We are thrilled to partner with PAG,
a seasoned investor in the solar industry. The Notes offer us a
flexible financing solution that aligns with both our capital
requirements and business objectives. This transaction paves the
way for long-term strategic collaboration with PAG in solar and in
clean energy."
Dr. Weijian Shan,
Executive Chairman of PAG, commented, "With two decades of
experience in the solar industry, Canadian Solar has established a
solid foundation as a globally leading solar player. Today, it is
well-positioned for growth, propelled by its scaled module
business, rapidly expanding energy storage segment, and renewable
energy development platform. We are pleased to partner with
Canadian Solar in the global clean energy transition."
The issuance of the securities under such transaction is exempt
from registration under the Securities Act of 1933, as amended (the
"Securities Act") in an offshore transaction in reliance upon
Regulation S under the Securities Act. This press release does not
constitute an offer to sell or a solicitation of an offer to buy
the securities described herein, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful.
About Canadian Solar
Canadian Solar was founded in
2001 in Canada and is one of the
world's largest solar technology and renewable energy companies. It
is a leading manufacturer of solar photovoltaic modules, provider
of solar energy and battery energy storage solutions, and developer
of utility-scale solar power and battery energy storage projects
with a geographically diversified pipeline in various stages of
development. Over the past 23 years, Canadian Solar has
successfully delivered over 125 GW of premium-quality, solar
photovoltaic modules to customers across the world. Likewise, since
entering the project development business in 2010, Canadian Solar
has developed, built, and connected over 10 GWp of solar power
projects and 3.3 GWh of battery energy storage projects across the
world. Currently, the Company has over 1.2 GWp of solar power
projects in operation, 6.5 GWp of projects under construction or in
backlog (late-stage), and an additional 19.8 GWp of projects in
advanced and early-stage pipeline. In addition, the Company has 600
MWh of battery energy storage projects in operation and a total
battery energy storage project development pipeline of around 56
GWh, including approximately 4.3 GWh under construction or in
backlog, and an additional 51.6 GWh at advanced and early-stage
development. Canadian Solar is one of the most bankable companies
in the solar and renewable energy industry, having been publicly
listed on the NASDAQ since 2006. For additional information about
the Company, follow Canadian Solar on LinkedIn or visit
www.canadiansolar.com.
Safe Harbor/ Forward-Looking Statements
Certain
statements in this press release are forward-looking statements
that involve a number of risks and uncertainties that could cause
actual results to differ materially. These statements are made
under the "Safe Harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. In some cases, you can identify
forward-looking statements by such terms as "believes," "expects,"
"anticipates," "intends," "estimates," the negative of these terms,
or other comparable terminology. Factors that could cause actual
results to differ include general business, regulatory and economic
conditions and the state of the solar and battery storage market
and industry; geopolitical tensions and conflicts, including
impasses, sanctions and export controls; volatility, uncertainty,
delays and disruptions related to the COVID-19 pandemic; supply
chain disruptions; governmental support for the deployment of solar
power; future available supplies of high-purity silicon; demand for
end-use products by consumers and inventory levels of such products
in the supply chain; changes in demand from significant customers;
changes in demand from major markets, such as Japan, the U.S., China, Brazil
and Europe; changes in effective
tax rates; changes in customer order patterns; changes in product
mix; changes in corporate responsibility, especially environmental,
social and governance ("ESG") requirements; capacity utilization;
level of competition; pricing pressure and declines in or failure
to timely adjust average selling prices; delays in new product
introduction; delays in utility-scale project approval process;
delays in utility-scale project construction; delays in the
completion of project sales; continued success in technological
innovations and delivery of products with the features that
customers demand; shortage in supply of materials or capacity
requirements; availability of financing; exchange and inflation
rate fluctuations; litigation and other risks as described in
Canadian Solar's filings with the Securities and Exchange
Commission, including its annual report on Form 20-F filed on
April 26, 2024. Although Canadian
Solar believes that the expectations reflected in the
forward-looking statements are reasonable, it cannot guarantee
future results, level of activity, performance, or achievements.
Investors should not place undue reliance on these forward-looking
statements. All information provided in this press release is as of
today's date, unless otherwise stated, and Canadian Solar
undertakes no duty to update such information, except as required
under applicable law.
Canadian Solar Inc. Contact
Wina Huang
Investor Relations
Canadian Solar Inc.
investor@canadiansolar.com
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SOURCE Canadian Solar Inc.