Enlight Renewable Energy Ltd (NASDAQ:ENLT). (NASDAQ: ENLT, TASE: ENLT), an electric services company, has successfully completed the offering of its Series D Notes today, raising approximately $133 million. The Israel-based company, specializing in renewable energy, announced the conclusion of the public tender for the purchase of these notes, which was conducted in Israel.
The offering, detailed in a report filed with the Tel Aviv Stock Exchange (TASE) on the same day, resulted in the issuance of 591,016 Series D Notes at a par value of NIS 1 each, totaling an aggregate face value of NIS 500 million. The notes were priced at NIS 846 per note, reflecting a discount rate of 16%, with a weighted average discount rate of 12.1%.
The tender attracted significant interest from Israeli institutional and classified investors, who were allocated 100% of their orders. Enlight Renewable Energy has stated that the net proceeds from the offering will be used to fund investments in its large-scale renewable energy projects across the United States, Europe, and the MENA region, as well as for other general corporate purposes. The notes have a term of 3.73 years.
On the same day, the Israeli credit rating agency Midroog confirmed an A2.il rating with a stable outlook for the expansion of the Series D Notes, up to a total face value of NIS 600 million.
The company has clarified that the notes will not be registered under the U.S. Securities Act of 1933 and will not be offered or sold in the United States or to U.S. persons without registration or an applicable exemption from the registration requirements.
This offering aligns with Enlight Renewable Energy's forward-looking statements, which emphasize the intention to use the proceeds to support its expansion and strengthen its portfolio in key markets. However, the company also acknowledges the risks and uncertainties inherent in such ventures, including the challenges of site acquisition, regulatory compliance, and the impact of macroeconomic factors on the renewable energy industry.
This report is based on a press release statement and contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
In other recent news, Enlight Renewable Energy secured $133 million in a notes tender, aiming to use the proceeds for expanding its renewable energy portfolio across the United States, Europe, and the MENA region. The company is also planning a potential expansion of its existing unsecured series D notes with an offering targeted at approximately NIS 300 million.
This development comes alongside a significant increase in the company's Q2 2024 financial performance, with a revenue surge of 61% to $85 million and adjusted EBITDA climbing by 39% to $58 million. In light of this, the company has adjusted its full-year guidance upwards, forecasting revenues between $345 million and $360 million, and EBITDA in the range of $245 million to $260 million.
Furthermore, Enlight Renewable Energy has commenced initial commercial operations at its Atrisco Solar & Energy Storage project near Albuquerque, New Mexico. Finally, the company has scheduled its Annual General Meeting of shareholders for November 2024.
InvestingPro Insights
Enlight Renewable Energy's recent $133 million fundraising through Series D Notes aligns with its growth strategy, as reflected in InvestingPro data. The company's revenue growth of 27.6% over the last twelve months and an impressive 61.14% quarterly growth indicate strong market demand for its renewable energy services. This growth trajectory supports the company's plans to invest in large-scale projects across various regions.
InvestingPro Tips highlight Enlight's impressive gross profit margins, which stand at 80.06% for the last twelve months. This financial strength provides the company with resources to fund its expansion plans. Additionally, analysts anticipate sales growth in the current year, which could be fueled by the proceeds from this recent offering.
It's worth noting that Enlight operates with a significant debt burden, as pointed out by InvestingPro Tips. The recent note offering may add to this debt, but it also provides necessary capital for growth initiatives. Investors considering Enlight should be aware that the company is trading at a high earnings multiple, with a P/E ratio of 32.32, reflecting market expectations for future growth.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips on Enlight Renewable Energy, providing a more comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.