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SolarEdge Technologies (NASDAQ:SEDG) -13.9% post-market Monday after announcing plans for a private placement of $300M of convertible senior notes and disclosing that one of its customers filed for Chapter 7 bankruptcy.
The company said the proceeds from its offering of convertible senior notes due in 2029, likely including an underwriters option to purchase up to an additional $45M of notes, would be used to pay the cost of capped call transactions, redeem a portion of outstanding 0% convertible notes due 2025, and for general corporate purposes.
SolarEdge (SEDG) also said it may not receive payment for $11.4M it is owed by PM&M Electric under a secured promissory note after the company filed for Chapter 7 bankruptcy, and any money it collects may only come after significant delay.
The company reiterated previous Q2 guidance for revenues of $250M-$280M, gross margin of zero to negative 4%, and operating expenses of $116M-$120M.