Itron, Inc. (NASDAQ: ITRI) – Itron aims to raise $ 750 million through stock sales and offering private debt for debt financing

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  • Itron Inc. (NASDAQ: ITRI) announced a sale of shares valued at $ 350 million in a subscribed public offering. The company will give the syndicate banks the option to purchase additional shares of up to $ 52.5 million.
  • The company also plans to raise $ 400 million through a private institutional offering of convertible senior notes maturing in 2026. It gave first-time buyers the option to purchase additional senior notes of up to $ 60 million within 13 days.
  • The proceeds from the issue, along with cash, will be used to repay debt under the credit facility originally entered into on January 5, 2018, as well as to pay for the fees of the offering.
  • Itron expects to enter into privately negotiated convertible bond hedge and warrant transactions with one or more of the first-time buyers in order to reduce the potential equity dilution of converting bonds.
  • The company plans to use the issue proceeds to hedge the convertible bonds and to repay the outstanding 5% Senior Notes due 2026 at a price of 102.5% of the nominal amount thereof plus accrued and unpaid interest.
  • Itron’s long-term debt and cash at December 31, 2020 were $ 902.6 million and $ 206.9 million, respectively.
  • The stock is up 87% over the past six months.
  • Price action: ITRI ​​stock closed 0.036% on Monday at $ 110.96.
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