Deal Description: On May 13, 2020, Sunnova Energy International Inc. (“Sunnova”) entered into a senior unsecured convertible note facility (the "Facility") to issue and sell $130.0 million aggregate principal amount of 9.75% convertible senior notes due 2025 (the "new notes") in a private placement. The Facility includes a 30-day option in which the investors may purchase up to $60 million in additional notes. The notes are convertible at the option of the investors at an initial conversion rate equivalent to $13.50 per share of common stock. The company may convert the notes under certain circumstances after May 14, 2023. The investors included affiliates of Kayne Anderson Capital Advisors, L.P., who acted as lead investor, as well as Liberty Mutual Group, Newlight Partners LP, and Magnetar Capital. BofA Securities, Inc. acted as sole capital markets advisor on the transaction.
In addition, Sunnova entered into privately negotiated exchanges (the “Exchanges”) with a small number of institutional investors in its 7.75% convertible senior notes due 2027 (the “existing notes") whereby such investors exchanged all $55.0 million aggregate principal amount of existing notes for an equal principal amount of the new notes. The Facility and the Exchanges are expected to close on or about May 14, 2020, subject to customary closing conditions.
Baker Botts L.L.P. represented Sunnova in this transaction.
Baker Botts Lawyers/Office Involved:
Corporate: Justin Hoffman (Partner, Houston); Travis Wofford (Partner, Houston); Martin Toulouse (Partner, New York); Jack Chadderdon (Associate, Houston), Josh Dunegan (Associate, Houston); Sarah J. Dodson (Senior Associate, Houston); Josh Davidson (Partner, Houston)
Advisory Counsel: Danny David (Partner, Houston)
For more information, please see Sunnova’s news release here.
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