SolarEdge Technologies shares plunged almost 20% after the energy company warned it may incur an $11.4 million loss after one of its major customers filed for bankruptcy.
The company wrote in a Securities and Exchange Commission (SEC) filing that it is monitoring the bankruptcy of Arizona-based solar panel installer PM&M, but that it “cannot guarantee the outcome of the proceedings and may fail to collect the amounts due to the company or collect such amounts only after significant delay.”
In the filing, the company also said it expects that it used $150 million in free cash during 2Q on “certain discretionary minority investments, extensions of credit provided to certain customers, higher than expected working capital related to the ramp of US manufacturing and a slower pace of payments on accounts receivable.”
Also weighing on SolarEdge stock Tuesday was its announcement that it plans to offer $300 million in new debt.
It will carry out a private offering to institutional buyers of Convertible Senior Notes that will mature on July 1, 2029.
The funding raised will be used to cover the cost of capped call transactions, repay earlier debt, and for general corporate purposes.
SolarEdge shares were down 19.3% at about $26.80 late morning on Tuesday.