Bloom Energy Corporation has successfully priced an upsized $350.0 million green convertible senior notes offering, representing an increase from the previously announced offering size of $250.0 million. The notes will accrue interest at a rate of 3.00% per annum and are due in 2029. They will be senior, unsecured obligations of Bloom Energy.
The initial conversion rate for the notes is set at 47.9795 shares of class A common stock per $1,000 principal amount, which represents an initial conversion price of approximately $20.84 per share. This initial conversion price reflects a premium of about 32.5% over the last reported sale price of $15.73 per share of Bloom Energy's class A common stock on May 23, 2024.
Bloom Energy estimates that the net proceeds from the offering of the notes will be approximately $338.8 million, or approximately $389.7 million if the initial purchasers exercise their option to purchase additional notes in full. The company plans to use approximately $141.8 million of the net proceeds to repurchase $115.0 million aggregate principal amount of its outstanding 2.50% green convertible senior notes due 2025 in privately negotiated transactions concurrently with the pricing of the offering.
The remaining net proceeds from the offering of the notes will be allocated for general corporate purposes, including research and development, sales and marketing activities, general and administrative matters, and capital expenditures related to projects that meet the "eligibility criteria."
It's important to note that the offer and sale of the notes and any shares of class A common stock issuable upon conversion of the notes have not been registered under the securities act or any other securities laws. Therefore, they cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the securities act and any other applicable securities laws. The market has reacted to these announcements by moving the company's shares 6.5% to a price of $16.52. For the full picture, make sure to review Bloom Energy's 8-K report.
