SCHEDULE: PAG Entities Disclose 14.1% Beneficial Ownership in Canadian Solar Inc. via Convertible Notes

PAG Castle Holdings Pte. Ltd. and its affiliated entities have disclosed a 14.1% beneficial ownership stake in Canadian Solar Inc., primarily through the acquisition of convertible notes.

Summary

• PAG Castle Holdings Pte. Ltd., a Singapore company, directly holds 10,989,020 common shares of Canadian Solar Inc. issuable upon conversion of convertible notes.
• The beneficial ownership is also attributed to PAGGC II-1 (Cayman) Limited, PAG Growth II LP, PAG Growth Capital GP II Limited, PAG Growth Limited, Pacific Alliance Group Limited, and PAG, all Cayman Islands entities, due to their hierarchical ownership structure over PAG Castle.
• The aggregate amount beneficially owned by each reporting person is 10,989,020 common shares.
• This represents 14.1% of Canadian Solar Inc.'s common shares, calculated based on the sum of 66,972,246 common shares issued and outstanding as of April 29, 2025, and the 10,989,020 convertible shares.
• The convertible notes are immediately convertible or convertible within the next 60 days.
• The securities were not acquired and are not held for the purpose or with the effect of changing or influencing the control of Canadian Solar Inc.

Sentiment

Score: 7

Explanation: The filing is a factual disclosure of a significant passive ownership stake by a major investment group. While neutral in tone, the acquisition of a 14.1% stake by PAG can be interpreted as a positive signal of confidence in Canadian Solar Inc.'s valuation and future prospects.

Positives

• A significant stake of 14.1% in Canadian Solar Inc. has been acquired by PAG, a major investment group, which can be interpreted as a vote of confidence in the company's future prospects and the solar energy sector.
• The investment is structured through convertible notes, indicating a strategic and potentially long-term interest in the company's equity.

Future Outlook

NA

Industry Context

This filing indicates a significant investment by a major global alternative asset manager, PAG, into Canadian Solar Inc., a prominent player in the global solar energy industry. Such an investment suggests continued institutional confidence in the growth trajectory of renewable energy and Canadian Solar's position within it.

Stakeholder Impact

• Shareholders: The potential conversion of convertible notes into common shares could lead to dilution of existing shareholders' equity, but the significant investment by a reputable group like PAG may also bolster investor confidence.
• Creditors: The existence of convertible notes implies a debt instrument that could convert to equity, potentially reducing the company's debt burden over time if the notes are converted.

Key Dates

Recommendation

Keywords

Canadian Solar Inc., PAG, beneficial ownership, convertible notes, solar energy, renewable energy, institutional investment, Schedule 13G