Canadian Solar Strengthens US Manufacturing and Storage Segment: Issues $200 Million Convertible Senior Notes

Kitchener, Canada – Canadian Solar Inc. has finalized the pricing for its $200 million offering of convertible senior notes, originally announced earlier, with a maturity date of January 15, 2031.

The notes were offered in a private placement to qualified institutional buyers under Rule 144A. The initial purchasers were granted an option to purchase up to an additional $30 million aggregate principal amount of the notes within 13 calendar days from the date of issuance. The company expects to close the offering on or around January 13, 2026, subject to customary closing conditions.

Canadian Solar estimates net proceeds from the offering to be approximately $194.6 million, or $223.9 million if the initial purchasers fully exercise their option. “The company plans to use the net proceeds for investments in U.S. manufacturing, the value chain for battery energy storage and solar solutions, as well as for working capital and general corporate purposes,” the announcement states.

The notes are unsecured senior obligations of the company and bear interest at a rate of 3.25% per year, payable semi-annually on January 15 and July 15, beginning July 15, 2026. Holders may convert the notes into Canadian Solar common shares at any time; the initial conversion rate is 36.1916 shares per $1,000 principal amount, corresponding to an initial conversion price of approximately $27.63 per share.

Beginning January 22, 2029, Canadian Solar may redeem the notes for cash if certain conditions related to the company’s stock price are met. In addition, the notes may be redeemed in the event of certain tax-related events. The notes and the shares issuable upon conversion are not registered under U.S. or other securities laws and may only be offered pursuant to applicable exemptions.

Founded in 2001, Canadian Solar is a global leader in photovoltaic modules and a provider of solar and battery energy storage solutions. The company has delivered nearly 170 GW of solar modules and over 16 GWh of battery energy storage solutions to date.

The company’s stock is currently trading up 3.13 percent at €17.125. In 2025, Canadian Solar’s shares gained 91.1 percent to €20.58, making it one of the top-performing stocks in the renewable energy index RENIXX World.

Source: IWR Online, 09 Jan 2026