#Canada #Convertible Notes #Energy Solutions #Canadian Solar #Kitchener

Canadian Solar's $200 Million Convertible Senior Notes

On January 7, 2026, Canadian Solar Inc. (NASDAQ: CSIQ), a leading player in the solar technology and renewable energy sector, made a significant announcement regarding a proposed offering of convertible senior notes. The company aims to issue these notes worth $200 million, which are set to mature in 2031.

This offering, which is subject to market conditions and other factors, will be available in a private placement to institutional buyers under Rule 144A of the Securities Act of 1933. In addition, the company has revealed plans to grant initial purchasers of these notes an option to buy an additional $30 million worth of the notes within 13 calendar days of the initial offering.

The funds raised from these notes will primarily focus on enhancing Canadian Solar’s U.S. manufacturing capacity, as well as bolstering the value chain associated with battery energy storage and solar power solutions. This financial strategy aligns with the company's broader objective to cultivate its resources for working capital and other corporate necessities.

When issued, these notes will operate as senior unsecured obligations of Canadian Solar and will yield interest bi-annually. They are set to mature on January 15, 2031, unless they are repurchased, redeemed, or converted early according to their terms.

Conversion and Redemption Terms

Holders of these notes have the option to convert all or part of their securities prior to the close of business on the third business day leading up to the maturity date. Upon conversion, holders will receive a number of Canadian Solar's common shares equivalent to the relevant conversion rate at the time of conversion, along with a cash payment for any fractional shares.

Furthermore, the notes are redeemable by Canadian Solar, either in full or partially, starting on January 22, 2029, provided that certain conditions regarding the company's stock price are met. They can also be redeemed in part due to specific tax-related events. The redemption price is set at 100% of the principal amount plus any accrued interest.

Repurchase and Registration Details

In specific scenarios reflecting fundamental changes, the holders have the right to require Canadian Solar to repurchase some or all of their notes for cash. Here, the repurchase price will mirror the principal amount of the notes, paired with any accrued interest.

It is important to note that the notes and the shares available upon conversion have not been registered under the Securities Act or any other securities laws, and therefore cannot be offered or sold without appropriate registration or an exemption.

About Canadian Solar Inc.

Headquartered in Kitchener, Ontario, Canadian Solar has established itself as one of the foremost solar technology firms in the world. Since its inception in 2001, it has become a leading manufacturer of solar photovoltaic modules and provider of both solar power and battery energy storage solutions. As of September 30, 2025, the company has successfully delivered nearly 170 GW of modules globally and has a significant backlog of contracted battery energy storage projects valued at approximately $3.1 billion.

Canadian Solar's commitment extends to developing, owning, and operating large-scale solar power and battery energy storage projects. Their project pipeline is geographically diversified and includes 25 GW of solar capacity and 81 GWh of storage currently under development.

Conclusion

This move by Canadian Solar signals a strategic push towards enhancing its capabilities in renewable energy, particularly in the context of rising electricity demand and the growing adoption of battery storage technologies. As they continue unto the future, the focus remains on driving corporate growth while supporting global sustainability goals.