Canadian Solar Prices Offering Of 2.78 Mln Shares At $36/shr - Quick Facts

(RTTNews) - Canadian Solar Inc. (CSIQ) announced that it priced the offering of 2.78 million common shares of the Company, with no par value, at $36.00 per common share. The company also priced the concurrent offering of $130 million in aggregate principal amount of 4.25% convertible senior notes due 2019.

These offerings, which are subject to customary closing conditions, are expected to close on February 18, 2014.

The Common Shares Offering was upsized from 2.60 million Common Shares and the Notes Offering was upsized from an aggregate principal amount of US$100 million.

The Notes will be convertible into Common Shares at an initial conversion rate of 22.2222 Common Shares per US$1,000 principal amount of the Notes (equivalent to an initial conversion price of approximately US$45.00 per Common Share), subject to adjustments under certain circumstances. The initial conversion price for the Notes represents an approximately 25.0% conversion premium over the Common Shares Offering price of US$36.00 per Common Share.

The Notes will accrue interest at an annual rate of 4.25%. Interest on the Notes will be payable semi-annually in arrears on February 15 and August 15 of each year, beginning August 15, 2014. The Notes will mature on February 15, 2019, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date.

The company plans to use the net proceeds from these offerings for general corporate purposes, which may include expanding manufacturing capacity, the development of solar power projects and working capital. The Company's management will retain broad discretion over the use of proceeds, and may ultimately use the proceeds for different purposes than what is currently intended.

The firm plans to invest the net proceeds in short-term, marketable instruments, pending any ultimate use of any portion of the proceeds from these offerings.