Enphase Energy talks $320 million five-year convertibles to yield 0%-0.5%, up 50%-55%

By Abigail W. Adams

Portland, Me., March 4 – Enphase Energy Inc. plans to price $320 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 0% to 0.5% and an initial conversion premium 50% to 55%, according to a market source.

Barclays and Goldman Sachs & Co. LLC are the bookrunners for the Rule 144A offering, which carries a greenshoe of $30 million.

The notes will initially be settled in cash and following the satisfaction of certain share reservation conditions will be settled in cash, shares or a combination of both at the company’s option.

In connection with the pricing of the notes, the company will enter into convertible note hedge and warrant transactions.

Proceeds will be used to cover the cost of the hedge transactions with remaining proceeds to be used for general corporate purposes, including the repayment of debt, working capital and potential acquisitions and strategic transactions.

Enphase Energy is a Fremont, Calif.-based global energy technology company.

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