Bloom Energy Corporation (NYSE: BE) recently announced that it has entered into privately negotiated exchange agreements to exchange a portion of its existing 2.50% green convertible senior notes due 2025 for 3.00% green convertible senior notes due 2029.
As part of the exchange transaction, approximately $112.8 million in aggregate principal amount of the 2025 convertible notes will be exchanged for approximately $115.7 million in aggregate principal amount of Bloom Energy’s 2029 convertible notes. After the completion of the exchange transaction, the aggregate principal amount of the 2025 convertible notes outstanding will be approximately $2.2 million, while the aggregate principal amount of the 2029 convertible notes outstanding will be approximately $518.2 million.
The 2029 convertible notes will be senior, unsecured obligations of Bloom Energy and 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. The notes will mature on June 1, 2029, unless earlier repurchased, redeemed, or converted.
Furthermore, the initial conversion rate for the 2029 convertible notes is 47.9795 shares of Class A common stock per $1,000 principal amount of notes, representing an initial conversion price of approximately $20.84 per share of Class A common stock.
It's worth noting that the exchange transaction and any Class A common stock issuable upon conversion of the 2029 convertible notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any other securities laws.
J. Wood Capital Advisors LLC acted as Bloom Energy’s financial advisor in connection with the exchange transaction. As a result of these announcements, the company's shares have moved 7.32% on the market, and are now trading at a price of $18.91. If you want to know more, read the company's complete 8-K report here.
