JWCA advises Sunnova on its $575 million convertible and capped call

May 2021 | read press release

Transaction Background

Sunnova Energy International (“Sunnova” or the “Company”) successfully raised $575mm in the convertible market at attractive terms

Sunnova’s objectives:

  • Take advantage of strong convertible market conditions

  • Repay higher coupon debt and increase financial flexibility

  • Finance or refinance one or more Eligible Green Projects

Sunnova engaged J. Wood Capital Advisors to assist in the structuring, negotiation, documentation and execution of the transaction

JWCA provided extensive analysis on deal structuring and related items, including:

  • Convertible and derivative overlay structuring

  • Impact of early adoption of new accounting rules

  • Convertible and capped call documentation to ensure maximum value and future efficiency/flexibility for the company

  • Shareholder messaging

JWCA designed and ran a capped call auction process to achieve competitive terms

JWCA provided advice, support and analysis throughout the execution process

Results

Sunnova executed a successful convertible issuance:

  • The transaction was oversubscribed, reflecting strong outright interest

  • Sunnova’s stock price traded down 7.5% on a day where comparables traded down 2-4%

  • JWCA supported the management team on the entire day of the offering providing execution advice and ensuring a high-quality execution

Capped call documentation and auction process produced meaningful savings for Sunnova, while maximizing flexibility for the Company