Summary
Bloom Energy Corporation (BE) announced on August 11, 2020, the issuance of $200 million in aggregate principal amount of 2.50% Green Convertible Senior Notes due 2025. This private offering, exempt from registration requirements, also includes an option for the initial purchaser to buy an additional $30 million in notes. The company intends to use the net proceeds for general corporate purposes, which may include funding its operations and growth initiatives. These notes are senior unsecured obligations with a 2.50% annual interest rate, payable semi-annually. They mature in August 2025 but can be converted into Bloom Energy's Class A common stock at an initial conversion price of approximately $16.21 per share, or repurchased or redeemed under specific conditions. The conversion feature offers potential upside to noteholders if the company's stock price appreciates, while the "Green" designation suggests a focus on sustainability-related projects or investments.
Key Highlights
- 1Issuance of $200 million in 2.50% Green Convertible Senior Notes due 2025.
- 2An option to purchase an additional $30 million of notes exists for the initial purchaser.
- 3The notes bear interest at 2.50% per annum, payable semi-annually.
- 4Notes are convertible into Class A common stock at an initial conversion price of approximately $16.21 per share.
- 5Conversion is permitted upon certain events before May 15, 2025, and at the noteholder's election thereafter until maturity.
- 6The company retains the option to redeem the notes under specific stock price performance conditions.
- 7The offering was conducted as a private placement under Section 4(a)(2) of the Securities Act, with initial resale to qualified institutional buyers under Rule 144A.