Solaris secures $135 million in convertible senior notes offering

In the United States on May 1, 2025, Solaris Energy Infrastructure, Inc. announced the pricing of its public offering of convertible senior notes with an aggregate principal amount of $135 million. These notes are set to mature in 2030 and carry an interest rate of 4.75%. In addition, Solaris has granted underwriters a 30-day option to purchase an additional $20 million in notes for over-allotments. The initial conversion rate is 37.8896 shares of Class A common stock per $1,000 in notes, with a conversion price of approximately $26.39 per share. This price shows a premium of 35% over the concurrent public offering price of $19.55 per share for shares of common stock. Solaris plans to redeem the notes at its discretion starting May 1, 2028, provided certain conditions are met, including the stock price exceeding 130% of the conversion price for a specified duration. Noteholders have the right to require Solaris to repurchase the notes for cash if a ‘fundamental change’ occurs, under specific conditions. The company intends to use the proceeds to purchase a subordinated convertible note from its subsidiary, Solaris Energy Infrastructure, LLC, which will aid in funding capital for new power generation projects, including natural gas turbines and necessary electrical equipment. This offering is a crucial step for Solaris as they continue to grow their operations and support customer activity, and the completion of this notes offering is contingent upon the related offering of Class A common stock. The process indicates a strategic approach to secure funding necessary for further development in their energy infrastructure, responding to the evolving demands within the energy sector and underlining the importance of financial mechanisms in supporting growth.