On August 19, 2024, Canadian Solar Inc. (Nasdaq: CSIQ) announced a definitive agreement with PAG, a prominent Asia-Pacific investment firm, for the issuance of US$200 million (approximately CA$271 million) in convertible notes. The deal is expected to close in Q4 2024, pending customary conditions.

The secured notes will bear a 6% annual interest rate, payable quarterly, and mature on December 31, 2029. Investors may request repurchase shortly after December 31, 2027. The notes are convertible into Canadian Solar common shares at US$18.20 per share—a 23.4% premium over the US$14.75 share price as of August 16, 2024. The conversion price is subject to customary adjustments.

Proceeds from the offering will be used to improve Canadian Solar’s capital structure, refinance certain debts, and support solar development initiatives. The notes will be secured through subsidiary pledges, allowing for greater financial flexibility.

Dr. Shawn Qu, Chairman and CEO, described the deal as a strategic financing solution aligned with Canadian Solar’s growth objectives and noted it may lead to deeper collaboration with PAG. Dr. Weijian Shan, Executive Chairman of PAG, praised Canadian Solar’s leadership in the solar and storage sector and expressed confidence in its growth trajectory.