Enphase Energy Inc. intends to offer $120 million of 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 securities will be convertible into cash, shares of common stock or a combination of both, according to a May 29 news release.

In connection with the offering Enphase expects to enter into convertible note hedge transactions to reduce potential dilution to its common stock.

Net proceeds will be used to pay the cost of the convertible note hedge transactions.

Concurrently with the offering, Enphase also intends to enter into separate transactions to repurchase the 4% convertible senior notes due 2023 in exchange for a number of common shares approximately equal to the number of shares underlying the repurchased 2023 notes and a cash amount to be negotiated with each holder. A portion of the proceeds of the offering are expected to be used to pay any such cash amounts.