Sunnova Energy talks $425 million six-year convertibles to yield 2.375%-2.875%, up 25%-30%

By Abigail W. Adams

Portland, Me., Aug. 15 – Sunnova Energy International Inc. plans to price $425 million of six-year convertible notes after the market close on Tuesday with price talk for a coupon of 2.375% to 2.75% and an initial conversion premium of 25% to 30%, according to a market source.

J.P. Morgan Securities LLC is bookrunner for the Rule 144A offering, which carries a greenshoe of $75 million.

The notes will be settled in cash, shares or a combination of both at the company’s option.

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 and for general corporate purposes.

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

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