Canadian Solar announced it has signed a $100 million two-year senior secured term loan arranged by Credit Suisse, Singapore.
In connection with the term loan, Canadian Solar issued the lenders warrants to purchase up to 1,348,040 shares of common stock at an exercise price of $24.48 per share.
The warrants will expire two years from the date of the closing, on October 25, 2017. The term loan facility may be increased by up to an additional $100.0 million, subject to customary conditions.
The term loan is being used to retire a bridge loan used to finance the acquisition of Recurrent Energy and for general corporate purposes, the company said in a statement.
Commenting on this development Dr. Shawn Qu, chairman and chief executive officer of Canadian Solar, said, this credit facility will increase the company’s financial flexibility as they expand their utility-scale project pipeline in the U.S.