Sunnova Energy International Inc’s Notes Facility and Exchange of Existing Convertible Senior Notes


Baker Botts L.L.P. represented Sunnova in the transaction.

On May 13, 2020, Sunnova Energy International Inc. entered into a senior unsecured convertible note facility to issue and sell $130.0 million aggregate principal amount of 9.75% convertible senior notes due 2025 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.

Sunnova Energy International Inc. (NYSE: NOVA) is a leading residential solar and energy storage service provider, with customers across the U.S. and its territories. Sunnova’s goal is to be the source of clean, affordable and reliable energy, with a simple mission: to power energy independence so that homeowners have the freedom to live life uninterrupted.

In addition, Sunnova entered into privately negotiated exchanges with a small number of institutional investors in its 7.75% convertible senior notes due 2027 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.

The Baker Botts team was led by Justin Hoffman (Picture) and included Travis Wofford, Martin Toulouse, Jack Chadderdon, Josh Dunegan, Sarah J. Dodson, Josh Davidson, Mike Bresson, Jon Nelsen, David Morris and Danny David.

Involved fees earner: Michael Bresson – Baker Botts; Jack Chadderdon – Baker Botts; Danny David – Baker Botts; Joshua Davidson – Baker Botts; Sarah Dodson – Baker Botts; Joshua Dunegan – Baker Botts; Justin Hoffman – Baker Botts; David Morris – Baker Botts; Jon Nelsen – Baker Botts; Martin Toulouse – Baker Botts; Travis Wofford – Baker Botts;

Law Firms: Baker Botts;

Clients: Sunnova Energy International Inc;

Author: Ambrogio Visconti