Sunnova Energy talks $500 million five-year convertible notes to yield 0% to 0.25%, up 30% to 35%

By Abigail W. Adams

Portland, Me., May 17 – Sunnova Energy International Inc. plans to price $500 million of five-year convertible notes after the market close on Monday with price talk for a coupon of 0% to 0.25% and an initial conversion premium of 30% to 35%, according to a market source.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $75 million.

The notes are non-callable until June 5, 2024 and then subject to a 130% hurdle.

There is takeover and dividend protection.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread, repay outstanding debt and finance or refinance eligible green projects.

Sunnova Energy is a Houston-based solar and energy storage service provider.

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