Ormat Technologies Prices $875M Convertible Notes Offering

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Ormat Technologies, Inc. announced the pricing of a private offering of $725 million aggregate principal amount of 1.50% Series A Convertible Senior Notes due 2031 and $150 million aggregate principal amount of 0.00% Series B Convertible Senior Notes due 2031. The company plans to use the net proceeds to repurchase approximately $285.9 million of its existing 2.50% convertible senior notes due 2027 and for general corporate purposes.

Why it matters

The convertible notes offering will allow Ormat to refinance existing debt at more favorable terms while providing additional capital to support the company's growth plans in geothermal, renewable energy generation, and energy storage. The repurchase of the 2027 notes is intended to offset some of the dilutive impact from the new convertible securities.

The details

The Series A Notes will bear interest at 1.50% per year, while the Series B Notes will be non-interest bearing. Both series of notes will be convertible into Ormat's common stock at an initial conversion price of approximately $140.40 per share, representing a 30% premium over the stock's last reported sales price. Ormat also granted the initial purchasers options to buy up to an additional $100 million of Series A Notes and $25 million of Series B Notes.

• The sale is expected to close on March 20, 2026.
• Holders of the Series B Notes may require Ormat to repurchase their notes on March 15, 2027.

What’s next

Ormat plans to use the remainder of the net proceeds from the offering for general corporate purposes.