Array Technologies Inc. (ARRY) stock plunged by 10.55% in the premarket at $20.44, at the last check on Tuesday. The stock gained 0.57% in the previous trading session, to close at $22.85 on November 29. Intraday trading the stock varied between a high of $23.28 and a low of $22.10 at a volume of 1.08 million. While in the 52-week range the stock moved between $12.72 and $54.78 at an average (65 days) volume of 2.37 million. In the past five days, the stock has gone down by 0.44% while it gained 3.39 in the past one month. Moreover, the past three months put the stock at a gain of 19.82% while it has lost 47.03% year to date. Currently, ARRY stock has a market capital of $3.07 billion with 135.03 million shares outstanding.
The reason for today’s bearishness in the stock is a result of the company’s proposed private offering of $325 million.
Founded in 1989, Array Technologies Inc. (ARRY) manufactures ground-mounting systems used in solar energy projects.
ARRY’s Proposed Private Offering
On November 29, Array Technologies Inc. (ARRY) announced its proposed private offering of convertible senior notes. As per the offering, convertible notes worth $325 million due 2028 are offered to eligible purchasers under Rule 144A of the Securities Act. Moreover, a further purchase option of an additional $48.75 million worth of senior convertible notes will also be granted to the purchasers.
The senior, unsecured obligations of ARRY or the Notes will accrue semiannually payable interest in arrears. In addition, the company will also enter capped call transactions with the initial purchasers or their affiliates.
ARRY intends to use the net proceeds from the offering to pay the cash consideration for its previously announced STI Acquisition (Soluciones Técnicas Intergrales Norland, S.L.).
Q3 Financial Highlights
On November 12, Array Technologies Inc. (ARRY) announced its financial results for the third quarter of 2021. As per the third quarter of 2021, the revenue was $192.1 million, against $139.5 million in the year-ago period. This shows an increase of 38% year over year.
Moreover, the adjusted net loss for the third quarter of 2021, was $9.8 million, against $12.4 million in Q3 of 2020. Consequently, the adjusted net loss per basic and diluted share was $0.07 in the third quarter of 2021. While in the third quarter of 2020, the adjusted net loss per basic and diluted share was $0.10.
