Canadian Solar Announces Proposed $200 Million Convertible Notes Offering to Fund U.S. Expansion and Energy Storage Investments

Canadian Solar Inc. has announced plans for a proposed private offering of US$200 million in convertible senior notes due 2031, aimed at raising capital to support U.S. manufacturing expansion, investments in battery energy storage and solar power solutions, as well as general corporate purposes. The offering will be made to qualified institutional buyers under Rule 144A of the U.S. Securities Act of 1933. The company also expects to grant initial purchasers an option to acquire up to an additional US$30 million in notes within 13 days of issuance.

The notes will be senior unsecured obligations, accruing interest semi-annually, and maturing on January 15, 2031, unless repurchased, redeemed, or converted earlier. Holders will have the option to convert the notes into Canadian Solar common shares at a conversion rate determined at pricing, along with a cash payment for any fractional shares.

The company may also redeem the notes in cash starting January 22, 2029, under specified conditions, including if the stock trades at 130% of the conversion price over a defined period. In addition, notes may be repurchased in full or in part following certain tax events or fundamental changes, with holders receiving the principal amount plus accrued interest.

Canadian Solar emphasized that the notes and the common shares deliverable upon conversion have not been registered under the Securities Act or other securities laws, and the offering will be conducted solely under applicable exemptions. The company clarified that this announcement is not an offer to sell or solicitation to purchase the notes in any jurisdiction where such an offer would be unlawful.

The proceeds from the proposed offering are expected to strengthen Canadian Solar’s U.S. operations and enhance its position in the renewable energy value chain, particularly in solar power and energy storage solutions.