Bloom Energy Prices Offering Of $350.0 Mln Of 3.00% Green Convertible Senior Notes Due 2029

(RTTNews) - Bloom Energy Corp. (BE) announced the pricing of its offering of $350.0 million aggregate principal amount of 3.00% green convertible senior notes due 2029.

The offering size was increased from the previously announced offering size of $250.0 million aggregate principal amount of notes. The issuance and sale of the notes is scheduled to settle on May 29, 2024.

Bloom Energy also granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date the notes are first issued, up to an additional $52.5 million principal amount of notes.

The 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, beginning on December 1, 2024. The notes will mature on June 1, 2029, unless earlier repurchased, redeemed or converted. Before March 1, 2029, noteholders will have the right to convert their notes only upon the occurrence of certain events.

Bloom Energy estimates that the net proceeds from the offering of the notes will be approximately $338.8 million, after deducting the initial purchasers' discounts and commissions and estimated offering expenses.

Bloom Energy intends to use approximately $141.8 million of the net proceeds from the offering of the notes 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.

Bloom Energy intends to use the remainder of the net proceeds from the offering of the notes for general corporate purposes, including research and development and sales and marketing activities, general and administrative matters.