Ormat Announces Full Exercise Of Underwriters’ Option To Purchase Additional Shares

Rhea-AI Summary

Ormat Technologies has expanded its public stock offering by 15%, successfully selling a total of 4,772,500 shares at $74.00 per share, accumulating approximately $340 million in net proceeds. The underwriters exercised their option to purchase an additional 622,500 shares.

CEO Doron Blachar expressed pride in attracting high-quality institutional investments and emphasized the company's commitment to enhancing shareholder value while providing renewable energy solutions. The proceeds will be allocated for corporate purposes, including potential acquisitions.

Positive

• Successfully raised approximately $340 million in net proceeds from expanded offering.
• Attracted investments from high-quality institutions, indicating strong market confidence.

Negative

• None.

Expands Previously-Announced Public Offering By 15%

RENO, Nevada, Nov. 30, 2020 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE: ORA) (“Ormat” or the “Company”), a leading vertically integrated company that is primarily engaged in the geothermal and recovered energy generation (“REG”) businesses, as well the solar photovoltaic (PV) and energy storage and management services business, today announced the full exercise of the underwriters' option to purchase an additional 622,500 shares of common stock at the public offering price of $74.00 per share in connection with the Company’s previously announced public offering of common stock. After giving effect to the full exercise of the option to purchase additional shares, the total number of shares sold by Ormat in the public offering was 4,772,500 shares resulting in net proceeds of approximately $340 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company.

“We are delighted to have successfully completed our public offering,” commented Doron Blachar, Ormat’s Chief Executive Officer. “I am pleased and proud that we have been able to secure investments from high-quality institutions within the United States and internationally. We look forward to continuing to create shareholder value while providing clean, renewable energy to customers and consumers around the world.”

Ormat intends to use the net proceeds from the offering for general corporate purposes, including working capital and capital expenditures, and for potential acquisitions, including complementary businesses, technologies or assets.

J.P. Morgan Securities LLC and BofA Securities acted as joint book-running managers for the offering. UBS Securities LLC is also acting as a joint book-running manager for the offering. Cowen, HSBC Securities (USA) Inc., Oppenheimer & Co. Inc. and Roth Capital Partners are acting as co-managers for the offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

The offering was made pursuant to an automatically effective shelf registration statement on Form S-3 (including a base prospectus and a related prospectus supplement) filed with the U.S. Securities and Exchange Commission. Copies of the base prospectus and related prospectus supplement may be obtained by contacting J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email: prospectus-eq_fi@jpmchase.com, or by telephone: 1 (866) 803-9204; and from BofA Securities, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001, Attention: Prospectus Department or by email at dg.prospectus_requests@bofa.com.

ABOUT ORMAT TECHNOLOGIES

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company engaged in geothermal and REG, with the objective of becoming a leading global provider of renewable energy. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed to utilities and developers worldwide, totaling over 3,000 MW of gross capacity. Ormat’s current 933 MW generating portfolio is spread globally across the U.S., Kenya, Guatemala, Indonesia, Honduras and Guadeloupe. Ormat expanded its operations to provide energy storage and energy management solutions, by leveraging its core capabilities and global presence as well as through its Viridity Energy Solutions Inc. subsidiary.

FORWARD-LOOKING STATEMENTS

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements concerning the completion of the offering and the use of proceeds therefrom. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see “Risk Factors,” in each case, included in Ormat’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”) on March 2, 2020, as amended by Amendment No. 1 on Form 10-K/A filed with the SEC on March 3, 2020, and Ormat’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 filed with the SEC on November 5, 2020 and other risk factors detailed from time to time in filings with the SEC. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Ormat Technologies Contact: Smadar Lavi VP Corporate Finance and Head of Investor Relations 775-356-9029 (ext. 65726) slavi@ormat.com

Investor Relations Agency Contact: Rob Fink FNK IR 646-809-4048 rob@fnkir.com

 

FAQ

What is the total number of shares Ormat sold in its recent public offering?

Ormat Technologies sold a total of 4,772,500 shares in its recent public offering.

How much money did Ormat Technologies raise from its recent stock offering?

Ormat Technologies raised approximately $340 million in net proceeds from the recent stock offering.

What was the public offering price per share for Ormat Technologies?

The public offering price per share for Ormat Technologies was $74.00.

How will Ormat use the proceeds from the public offering?

Ormat intends to use the proceeds for general corporate purposes, including working capital, capital expenditures, and potential acquisitions.

Who managed the public offering for Ormat Technologies?

The public offering was managed by J.P. Morgan Securities LLC and BofA Securities as joint book-running managers, along with UBS Securities LLC.