Bloom Energy (NYSE: BE) stock jumped in pre-market trading Tuesday after the company upsized green convertible senior notes offering to $350 million.
Bloom Energy (BE) has announced the pricing of its offering of $350.0 million aggregate principal amount of 3.00% green convertible senior notes due 2029 in a private offering. The offering targets qualified institutional buyers under Rule 144A of the Securities Act 1933. The company upsized the offering from the initially announced $250 million to meet investor demand.
The company will issue and sell these notes on May 29, 2024, pending the fulfillment of customary closing conditions. Additionally, Bloom Energy has granted the initial purchasers of the notes an option to acquire up to an additional $52.5 million principal amount of notes within 13 days from the issuance date.
Terms of the Notes Offering
These senior, unsecured obligations of Bloom Energy will accrue interest at a rate of 3.00% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, starting December 1, 2024. The notes will mature on June 1, 2029, unless earlier repurchased, redeemed, or converted. Noteholders will have the right to convert their notes before March 1, 2029, upon the occurrence of certain events. Bloom Energy retains the option to redeem the notes for cash from June 7, 2027, subject to certain conditions. The company will set the interest and the conversion rate at the offering’s pricing.
Bloom Energy estimates that it will net approximately $338.8 million from this notes offering (or about $389.7 million if the initial purchasers fully exercise their option to purchase additional notes), after deducting discounts, commissions, and estimated offering expenses.
Bloom Energy intends to allocate around $141.8 million of the net proceeds from this offering to repurchase $115.0 million aggregate principal amount of its outstanding 2.50% Green Convertible Senior Notes due 2025 through privately negotiated transactions, coinciding with the pricing of the offering. The company will direct the remaining proceeds toward general corporate purposes, including research and development, sales and marketing activities, general administrative matters, and capital expenditures.
Bloom Energy (NYSE: BE) Stock Movement
At 08:25 a.m. (Eastern Time) on Tuesday, BE stock price was $16.50, indicating a 1.28% increase from the previous trading session.
