Array Technologies, global manufacturer of utility-scale solar technology, has entered into an agreement to sell up to $500 million of perpetual preferred stock to private equity business, Blackstone Energy Partners.
Under the terms of the agreement, Array will sell $350 million of stock to Blackstone at the initial closing, with an option to add an additional $150 million stock at any time prior to June 30, 2023. Furthermore, Blackstone will appoint one member to Array’s board of directors.
“Investing in Array is an opportunity for us to partner with an established solar industry leader and highlights Blackstone’s commitment to investing in companies that are enabling the transition to clean energy.
“We believe Array will be one of the long-term winners in the solar equipment market and that this investment will allow the company to accelerate its internal and external growth plans. We are very excited about what we will be able to achieve working together in the coming years,” said Bilal Khan, Senior Managing Director of Blackstone.
The stock will be entitled to cash dividends at a rate of 5.75% annually and, subject to the receipt of certain regulatory approvals, Blackstone will receive 7.875 million shares of Array common stock representing approximately 5.8% of shares outstanding.
“This investment and its terms underscore the preeminent position that Array occupies in the solar industry and is a tremendous validation of the company’s long-term growth potential. I look forward to working together with our new partners at Blackstone to further grow the company and accelerate value creation for our shareholders,” said Brad Forth, Chairman of Array Technologies.