Enphase Energy Inc. priced $120 million of 1.0% convertible senior notes due June 1, 2024, in a private placement to qualified institutional buyers.

The company plans to grant the initial purchasers a 13-day option to purchase up to an additional $12 million of the notes to cover any overallotments.

The initial conversion rate for the notes is 48.7781 shares of the company's common stock per $1,000 principal amount of the notes, representing a premium of approximately 30% to the $15.77 per share closing price on May 30, according to a May 31 news release.

The interest on the notes is payable semiannually on June 1 and Dec. 1 each year, starting from Dec. 1.

Net proceeds will be used to pay the cost of the convertible note hedge transactions and for general corporate purposes, including repayments of debt, working capital and potential acquisitions and strategic transactions.