Renewable energy co Ormat dips premarket after convertible bonds sale upsized to $875 mln

Ormat Technologies

18/03/2026 13:24

** Shares of renewable energy co Ormat Technologies ORA.N trading down 1.5% premarket to $106.39 after co raises more capital than planned

** Reno, Nevada-based firm early Weds announced pricing private offerings of $725 mln 1.5% Series A convertible bonds (CBs) and $150 mln 0% Series B CBs

** Combined offering hiked from planned sale of $750 mln CBs

** Initial conversion price for both series of $140.40 represents 30% premium to stock's last close of $108

** Co expects to use ~$287.9 mln of net offering proceeds and $25 mln cash on hand to repurchase about $285.9 mln principal of its 2.50% CBs due 2027

** It expects to use about $25 mln to buy back its shares to facilitate hedging by investors in the new CBs, remainder for general purposes

** ORA has ~$6.6 bln market cap

** Through Tues, stock finished down ~2% YTD but up nearly 50% over the past 12 months

** Last month, ORA inked deal with NV Energy to supply clean power for Alphabet-owned Google's GOOGL.O operations in Nevada

** Avg rating of 11 analysts covering ORA is "buy"; median PT $130, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))