Benzinga | Mar 9, 2021 09:17AM EST

Itron Seeks $750M Via Share Sale And Private Note Offering For Debt Financing

* Itron Inc (NASDAQ: ITRI) announced a share sale worth $350 million in an underwritten public offering. The company will grant the underwriters the option to procure additional shares up to $52.5 million.

* The company also plans to raise $400 million in a private institutional offering of convertible senior notes due 2026. It granted the initial purchasers the option to purchase additional senior notes up to $60 million under 13 days.

* The offering proceeds, along with cash on hand, will be utilized for debt repayment under its credit facility that was initially entered into on January 5, 2018, and fees of the offering.

* Itron expects to enter into a privately negotiated convertible note hedge and warrant transactions with one or more of the initial purchasers to reduce the potential stock dilution upon any note conversion.

* The company plans to utilize the offering proceeds for the convertible note hedge transactions, repay the outstanding 5% senior notes due 2026 at a price equal to 102.5% of the principal amount thereof, plus accrued and unpaid interest.

* Itron's long-term debt and cash balance amounted to $902.6 million and $206.9 million, respectively, on December 31, 2020.

* Its stock has climbed 87% in the last six months.

* Price action: ITRI shares closed higher by 0.036% at $110.96 on Monday.