Ormat Technologies Raises Up to $975.7M Through Private Convertible Notes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy ORA?
Source: seekingalpha
- Increased Financing Size: Ormat Technologies is raising up to $975.7 million through the issuance of convertible notes, an increase from its previous $750 million plan, indicating strong market support for its financing needs, with the offering expected to close on March 20, 2026.
- Note Details: The offering includes $725 million in 1.50% Series A notes and $150 million in 0% Series B notes, with both series convertible into 7.1225 shares per $1,000, implying a conversion price of about $140.40 per share, which represents a roughly 30% premium to Ormat's stock price on March 17, 2026.
- Clear Use of Proceeds: Ormat expects to generate approximately $853.6 million in net proceeds and plans to use about $287.9 million plus $25 million in cash to repurchase $285.9 million of its 2027 notes, with an additional $25 million allocated for stock buybacks at $108 per share, reflecting its commitment to shareholder returns.
- Dilution Offset Strategy: By repurchasing shares and utilizing cash on hand, Ormat aims to mitigate the dilutive effects of the 2027 notes, enhancing investor confidence and preserving shareholder value, which underscores the company's proactive approach to capital structure management.
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Analyst Views on ORA
Wall Street analysts forecast ORA stock price to rise
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 109.140
Low
111.00
Averages
120.00
High
135.00
Current: 109.140
Low
111.00
Averages
120.00
High
135.00
About ORA
Ormat Technologies, Inc. is a geothermal and vertically integrated company engaged in geothermal and recovered energy generation (REG). 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 owns or has installed for utilities and developers worldwide, totaling approximately 3,400 megawatts (MW) of gross capacity. Its segments include Electricity Segment, Product Segment and Energy Storage Segment. Its Electricity segment develops, builds, owns and operates geothermal, solar PV and recovered energy-based power plants in the United States and geothermal power plants in other countries around the world. Product segment designs, manufactures, and sells equipment for geothermal and recovered energy-based electricity generation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ormat Technologies Raises Up to $975.7M Through Private Convertible Notes
- Increased Financing Size: Ormat Technologies is raising up to $975.7 million through the issuance of convertible notes, an increase from its previous $750 million plan, indicating strong market support for its financing needs, with the offering expected to close on March 20, 2026.
- Note Details: The offering includes $725 million in 1.50% Series A notes and $150 million in 0% Series B notes, with both series convertible into 7.1225 shares per $1,000, implying a conversion price of about $140.40 per share, which represents a roughly 30% premium to Ormat's stock price on March 17, 2026.
- Clear Use of Proceeds: Ormat expects to generate approximately $853.6 million in net proceeds and plans to use about $287.9 million plus $25 million in cash to repurchase $285.9 million of its 2027 notes, with an additional $25 million allocated for stock buybacks at $108 per share, reflecting its commitment to shareholder returns.
- Dilution Offset Strategy: By repurchasing shares and utilizing cash on hand, Ormat aims to mitigate the dilutive effects of the 2027 notes, enhancing investor confidence and preserving shareholder value, which underscores the company's proactive approach to capital structure management.
See More
Ormat Technologies Plans $750 Million Convertible Notes Offering
- Convertible Notes Offering: Ormat Technologies announced its plan to offer $750 million in convertible senior notes through private placements, consisting of $600 million Series A notes and $150 million Series B notes, both maturing in 2031, indicating the company's proactive approach to capital market utilization.
- Clear Use of Proceeds: The company intends to use part of the proceeds, along with $25 million in cash, to repurchase a portion of its outstanding 2.50% convertible notes due in 2027, and also to buy back shares in privately negotiated transactions, aiming to optimize its capital structure and enhance shareholder value.
- Flexible Bond Terms: These notes will be unsecured and will pay interest semiannually starting in September 2026, with Series B noteholders having the option to require repurchase in March 2027, which enhances investor flexibility and security.
- Positive Market Reaction: Following the announcement, Ormat Technologies' stock rose 0.87% in after-hours trading to $107.07, reflecting market confidence and approval of the company's financing strategy.
See More
Orange Initiates Share Buyback Program
- Share Buyback Program: Orange has announced the purchase of 500,000 ordinary shares under its share buyback program, totaling €8,766,607.90, aimed at fulfilling obligations related to long-term incentive plans for executives and senior employees.
- Incentive Plan Context: This long-term incentive plan is designed to enhance key managers' involvement in the success of the Group's strategic plan by linking it to performance and attendance, thereby improving overall management efficiency and employee loyalty.
- Transaction Details: On March 13 and 16, 2026, Orange purchased 296,938 shares and 203,062 shares at weighted average prices of €17.51 and €17.56 respectively, reflecting the company's confidence in its stock value.
- Market Position Strengthening: As a leading global telecommunications operator, Orange's buyback further solidifies its market position, which is expected to positively impact future shareholder returns and the company's image.
See More
Big Tech's Surge in Carbon Credit Purchases Amid AI Boom
- Surge in Carbon Credit Purchases: Since the launch of ChatGPT in 2022, Amazon, Google, Meta, and Microsoft have ramped up their permanent carbon credit purchases from 14,200 to 11.92 million in 2023, indicating a strong commitment to net-zero goals despite sustainability concerns raised by AI's energy consumption.
- Future Spending Expectations: These tech giants are projected to spend nearly $700 billion on AI infrastructure in 2023, driving sustained demand for carbon credits and reflecting a focus on long-term climate strategies, even as achieving net-zero emissions poses significant challenges.
- Microsoft's Market Leadership: Microsoft stands out with a notable increase in carbon credit purchases, reaching 5 million in 2023, a 247% rise from 2022, and is expected to grow to 21.9 million in 2024, showcasing its pioneering role in the carbon removal market.
- Sustainability Strategy: While Big Tech's active carbon credit purchases are evident, experts highlight a contradiction with their aspirations to build more sustainable infrastructure, emphasizing the need for more effective long-term solutions to address climate change.
See More
Aperture Investors Acquires New Stake in Ormat Technologies
- New Investment Disclosure: On February 17, 2026, Aperture Investors disclosed a new position by acquiring 231,633 shares of Ormat Technologies valued at $25.59 million, indicating a strong interest in the renewable energy sector.
- Portfolio Impact: This acquisition accounts for 2.92% of Aperture's reportable U.S. equity assets totaling $875.41 million, highlighting Ormat's increasing significance within the fund's investment strategy.
- Company Performance Highlights: Ormat Technologies reported $989.6 million in revenue for 2025, a 12.5% increase driven by robust growth in its energy storage and product segments, underscoring its competitive position in the renewable energy market.
- Future Outlook: CEO Doron Blachar emphasized that the demand for low-carbon electricity, fueled by AI and data center expansion, suggests strong growth potential for Ormat, which likely attracted Aperture's investment interest.
See More
Aperture Investors Takes New Position in Ormat Technologies
- New Investment Position: Aperture Investors initiated a new position in Ormat Technologies by acquiring 231,633 shares worth $25.59 million in Q4 2026, reflecting confidence in the renewable energy sector, particularly in geothermal and recovered energy generation.
- Asset Allocation: Ormat Technologies now represents 2.92% of Aperture Investors' AUM, indicating a strategic investment despite not being among the top five holdings, with its diversified business model providing a stable revenue base crucial for the transition to sustainable energy.
- Strong Financial Performance: The company reported approximately $989.6 million in revenue for 2025, marking a 12.5% increase driven by robust growth in energy storage and product segments, while net income remained flat at $123.9 million, and adjusted EBITDA rose 6% to $582 million.
- Optimistic Market Outlook: CEO Doron Blachar highlighted the increasing demand for low-carbon electricity fueled by AI and data center expansion as a positive indicator for future growth, although the Motley Fool analyst team did not include Ormat in their top investment stocks, its market performance remains noteworthy.
See More
Ormat Technologies Raises Up to $975.7M Through Private Convertible Notes
- Increased Financing Size: Ormat Technologies is raising up to $975.7 million through the issuance of convertible notes, an increase from its previous $750 million plan, indicating strong market support for its financing needs, with the offering expected to close on March 20, 2026.
- Note Details: The offering includes $725 million in 1.50% Series A notes and $150 million in 0% Series B notes, with both series convertible into 7.1225 shares per $1,000, implying a conversion price of about $140.40 per share, which represents a roughly 30% premium to Ormat's stock price on March 17, 2026.
- Clear Use of Proceeds: Ormat expects to generate approximately $853.6 million in net proceeds and plans to use about $287.9 million plus $25 million in cash to repurchase $285.9 million of its 2027 notes, with an additional $25 million allocated for stock buybacks at $108 per share, reflecting its commitment to shareholder returns.
- Dilution Offset Strategy: By repurchasing shares and utilizing cash on hand, Ormat aims to mitigate the dilutive effects of the 2027 notes, enhancing investor confidence and preserving shareholder value, which underscores the company's proactive approach to capital structure management.
See More
Ormat Technologies Plans $750 Million Convertible Notes Offering
- Convertible Notes Offering: Ormat Technologies announced its plan to offer $750 million in convertible senior notes through private placements, consisting of $600 million Series A notes and $150 million Series B notes, both maturing in 2031, indicating the company's proactive approach to capital market utilization.
- Clear Use of Proceeds: The company intends to use part of the proceeds, along with $25 million in cash, to repurchase a portion of its outstanding 2.50% convertible notes due in 2027, and also to buy back shares in privately negotiated transactions, aiming to optimize its capital structure and enhance shareholder value.
- Flexible Bond Terms: These notes will be unsecured and will pay interest semiannually starting in September 2026, with Series B noteholders having the option to require repurchase in March 2027, which enhances investor flexibility and security.
- Positive Market Reaction: Following the announcement, Ormat Technologies' stock rose 0.87% in after-hours trading to $107.07, reflecting market confidence and approval of the company's financing strategy.
See More
Orange Initiates Share Buyback Program
- Share Buyback Program: Orange has announced the purchase of 500,000 ordinary shares under its share buyback program, totaling €8,766,607.90, aimed at fulfilling obligations related to long-term incentive plans for executives and senior employees.
- Incentive Plan Context: This long-term incentive plan is designed to enhance key managers' involvement in the success of the Group's strategic plan by linking it to performance and attendance, thereby improving overall management efficiency and employee loyalty.
- Transaction Details: On March 13 and 16, 2026, Orange purchased 296,938 shares and 203,062 shares at weighted average prices of €17.51 and €17.56 respectively, reflecting the company's confidence in its stock value.
- Market Position Strengthening: As a leading global telecommunications operator, Orange's buyback further solidifies its market position, which is expected to positively impact future shareholder returns and the company's image.
See More
Big Tech's Surge in Carbon Credit Purchases Amid AI Boom
- Surge in Carbon Credit Purchases: Since the launch of ChatGPT in 2022, Amazon, Google, Meta, and Microsoft have ramped up their permanent carbon credit purchases from 14,200 to 11.92 million in 2023, indicating a strong commitment to net-zero goals despite sustainability concerns raised by AI's energy consumption.
- Future Spending Expectations: These tech giants are projected to spend nearly $700 billion on AI infrastructure in 2023, driving sustained demand for carbon credits and reflecting a focus on long-term climate strategies, even as achieving net-zero emissions poses significant challenges.
- Microsoft's Market Leadership: Microsoft stands out with a notable increase in carbon credit purchases, reaching 5 million in 2023, a 247% rise from 2022, and is expected to grow to 21.9 million in 2024, showcasing its pioneering role in the carbon removal market.
- Sustainability Strategy: While Big Tech's active carbon credit purchases are evident, experts highlight a contradiction with their aspirations to build more sustainable infrastructure, emphasizing the need for more effective long-term solutions to address climate change.
See More
Aperture Investors Acquires New Stake in Ormat Technologies
- New Investment Disclosure: On February 17, 2026, Aperture Investors disclosed a new position by acquiring 231,633 shares of Ormat Technologies valued at $25.59 million, indicating a strong interest in the renewable energy sector.
- Portfolio Impact: This acquisition accounts for 2.92% of Aperture's reportable U.S. equity assets totaling $875.41 million, highlighting Ormat's increasing significance within the fund's investment strategy.
- Company Performance Highlights: Ormat Technologies reported $989.6 million in revenue for 2025, a 12.5% increase driven by robust growth in its energy storage and product segments, underscoring its competitive position in the renewable energy market.
- Future Outlook: CEO Doron Blachar emphasized that the demand for low-carbon electricity, fueled by AI and data center expansion, suggests strong growth potential for Ormat, which likely attracted Aperture's investment interest.
See More
Aperture Investors Takes New Position in Ormat Technologies
- New Investment Position: Aperture Investors initiated a new position in Ormat Technologies by acquiring 231,633 shares worth $25.59 million in Q4 2026, reflecting confidence in the renewable energy sector, particularly in geothermal and recovered energy generation.
- Asset Allocation: Ormat Technologies now represents 2.92% of Aperture Investors' AUM, indicating a strategic investment despite not being among the top five holdings, with its diversified business model providing a stable revenue base crucial for the transition to sustainable energy.
- Strong Financial Performance: The company reported approximately $989.6 million in revenue for 2025, marking a 12.5% increase driven by robust growth in energy storage and product segments, while net income remained flat at $123.9 million, and adjusted EBITDA rose 6% to $582 million.
- Optimistic Market Outlook: CEO Doron Blachar highlighted the increasing demand for low-carbon electricity fueled by AI and data center expansion as a positive indicator for future growth, although the Motley Fool analyst team did not include Ormat in their top investment stocks, its market performance remains noteworthy.
See More
