Leading global manufacturer of utility-scale solar technology Array Technologies (Nasdaq: ARRY) announced today a capital commitment of up to $500 million from alternative investment manager Blackstone’s energy-focused private equity business Blackstone Energy Partners.

According to the companies, the capital will be used to repay debt and to fund Array’s growth initiatives, including its efforts to be an industry consolidator.

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Brad Forth, Chairman of Array Technologies, said:

“This investment and its terms underscore the preeminent position that Array occupies in the solar industry and is a tremendous validation of the Company’s long-term growth potential. Marrying our technology and customer relationships with the financial strength and global reach of Blackstone makes us even stronger and positions Array to be a consolidator during this period of extraordinary supply chain disruption. I look forward to working together with our new partners at Blackstone to further grow the Company and accelerate value creation for our shareholders.”

Array is one of the world’s largest manufacturers of ground-mounting systems used in solar energy projects, with its principal product being a “tracker,” an integrated system of steel supports, electric motors, gearboxes, electronic controllers and software, to move solar panels throughout the day to maintain an optimal orientation to the sun, significantly increasing energy production. The company completed its $1 billion IPO in October 2020.

Under the new agreement, Blackstone will invest $350 million in perpetual preferred stock entitled to cash dividends at a rate of 5.75%, with an option to purchase up to an additional $150 million of perpetual preferred stock by June 30, 2023. Subject to regulatory approvals, Blackstone will receive 7.875 million shares of Array common stock representing approximately 5.8% of shares outstanding. Blackstone will also appoint a member to Array’s Board of Directors.

According to Bilal Khan, Senior Managing Director of Blackstone, the firm’s investment highlights its commitment to investing in companies that are enabling the transition to clean energy.

Khan added:

“We believe Array will be one of the long-term winners in the solar equipment market and that this investment will allow the company to accelerate its internal and external growth plans. We are very excited about what we will be able to achieve working together in the coming years.”