Ormat Technologies priced a $725 million Series A convertible senior note and a $150 million Series B convertible senior note, bringing the total offering to $875 million. The Series A notes carry a 1.50% coupon and mature on March 15, 2031, while the Series B notes are zero‑coupon and mature on the same date.
The notes are convertible at the holders’ option, with an initial conversion rate of 7.1225 shares per $1,000 principal, which translates to a conversion price of roughly $140.40 per share. That price represents a 30% premium over the last reported share price of $108.00 on March 17, 2026, reflecting strong investor demand for the convertible structure.
Ormat will use the proceeds to repay approximately $285.9 million of its 2.50% convertible senior notes due 2027, repurchase about $25 million of shares, and fund general corporate purposes. The repayment and share‑repurchase actions are intended to offset the potential dilution from the new convertible notes and to maintain the company’s debt‑free growth strategy.
The upsizing of the offering from an initial $750 million proposal to $875 million demonstrates robust demand for Ormat’s debt, underscoring confidence in the company’s renewable‑energy portfolio and its expansion plans in geothermal and energy‑storage markets. By refinancing existing debt and returning capital to shareholders, Ormat aims to strengthen its balance sheet while preserving flexibility for future growth initiatives.
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