Canadian Solar Inc. Announces Private Placement of $200 Million Convertible Secured Notes with PAG

GUELPH, ON, August 19, 2024 /PRNewswire/ — Canadian Solar Inc. (the “Company” or “Canadian Solar”) (Nasdaq CSIQ) today announced that it has entered into a definitive agreement with PAG, a leading global investment firm in the solar sector. Asia and Pacificaccording to which PAG will subscribe 200 million dollars in the aggregate principal amount of convertible notes (the “Notes”) to be issued by the Company. The transaction is expected to close in the fourth quarter of 2024, subject to closing conditions. The Company will retain some flexibility with respect to distributions, using the net proceeds to optimize its capital structure, repay certain other debt and invest in solar energy development projects.

The bonds will bear interest at a rate of 6% per annum, payable quarterly in arrears, and will mature in December 31, 2029The Bondholders also have the right to request that the Company repurchase the Bonds shortly thereafter. December 31, 2027Under the terms of the Notes, the Notes are convertible into common shares of the Company at the option of the holder at the initial conversion price $18.20which represents a premium of approximately 23.4% above the Company’s last reported share price of $14.75 per common share on the Nasdaq Global Select Market August 16, 2024. The conversion rate will be subject to customary market adjustments. The Notes will be secured by certain pledges granted by subsidiaries of the Company.

Doctor Shawn QuPresident and CEO of Canadian Solar, said, “We are excited to partner with PAG, an experienced investor in the solar industry. The bonds offer us a flexible financing solution that aligns with both our capital requirements and business objectives. This transaction paves the way for a long-term strategic partnership with PAG in solar and clean energy.”

Doctor Weijian Shan, Executive Chairman of PAG, commented, “With two decades of solar industry experience, Canadian Solar has built a solid foundation as a global leader in the solar industry. It is now well-positioned for growth, driven by its scalable modules business, rapidly expanding energy storage segment and renewable energy development platform. We are excited to partner with Canadian Solar on the global clean energy transformation.”

The issuance of securities in such transaction is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) in an offshore transaction in reliance on Regulation S under the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

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About the Canadian Solar Company
Canadian Solar was founded in 2001 in Canada and is one of the world’s largest solar technology and renewable energy companies. It is a leading manufacturer of photovoltaic modules, a provider of solar and battery energy storage solutions, and a developer of utility-scale solar and battery energy storage projects with a geographically diversified pipeline at various stages of development. Over the past 23 years, Canadian Solar has successfully delivered over 125 GW of high-quality photovoltaic modules to customers worldwide. Similarly, since it began its project development business in 2010, Canadian Solar has developed, constructed and connected over 10 GWp of solar energy projects and 3.3 GWh of battery energy storage projects worldwide. The Company currently has over 1.2 GWp of solar energy projects in operation, 6.5 GWp of projects under construction or in a backlog (late stage), and an additional 19.8 GWp of projects in advanced and early stage development. In addition, the Company has 600 MWh of battery storage projects under development and a total battery storage project pipeline of approximately 56 GWh, including approximately 4.3 GWh under construction or in the pipeline and an additional 51.6 GWh in advanced and early stage development. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, listed on the NASDAQ Stock Exchange since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.

Safe Harbor/Forecast Statements
Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” the negative of these terms or other comparable terminology. Factors that could cause actual results to differ include general business, regulatory and economic conditions and the state of the solar and battery energy storage market and industry; geopolitical tensions and conflicts, including gridlock, sanctions and export controls; volatility, uncertainties, delays and disruptions related to the COVID-19 pandemic; supply chain disruptions; government support for the deployment of solar energy; future available supplies of high-purity silicon; consumer demand for end products and inventory levels of such products in the supply chain; changes in demand from major customers; changes in demand in major markets such as JapanUnited States, China, Brazil AND Europe; changes in effective tax rates; changes in customer ordering patterns; changes in product mix; changes in corporate responsibility, particularly environmental, social and governance (“ESG”) requirements; capacity utilization; the level of competition; pricing pressures and declines or failure to adjust average selling prices on a timely basis; delays in the introduction of new products; delays in the approval process for utility-scale projects; delays in the construction of utility-scale projects; delays in the completion of project sales; continued success in technological innovation and the delivery of products with features required by customers; shortages in the supply of materials or capacity requirements; availability of financing; currency fluctuations and inflation; litigation and other risks described in Canadian Solar’s filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F filed on April 26, 2024. Although Canadian Solar believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. Investors should not place undue reliance on these forward-looking statements. All information contained in this press release is as of today’s date unless otherwise indicated, and Canadian Solar undertakes no obligation to update such information, except as required by applicable law.

Contact Canadian Solar Inc.
Huang Wines
Investor Relations
Canadian Solar Company Inc.
[email protected]

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SOURCE Canadian Solar Inc.