Summary
Bloom Energy Corporation (BE) has announced the satisfaction and discharge of its 10.25% Senior Secured Notes due 2027, effectively settling its obligations related to these notes. This action was completed on June 8, 2023, after the company irrevocably deposited sufficient funds to redeem the outstanding principal amount of $57,645,041. The redemption price was set at 104% of the principal plus accrued interest, totaling the "Redemption Amount." This significant financial maneuver was funded by proceeds from the company's recent issuance of 3.00% Green Convertible Senior Notes due 2028. The satisfaction and discharge of the indenture and related security documents mean Bloom Energy and its guarantor are released from their obligations under the Notes and associated guarantees, except for provisions that contractually survive such discharge. This move is a positive step in managing the company's debt structure and leverage.
Key Highlights
- 1Bloom Energy has successfully redeemed and discharged its 10.25% Senior Secured Notes due 2027, effective June 8, 2023.
- 2The total principal amount of the redeemed notes was $57,645,041.
- 3The redemption was executed at 104% of the principal amount, plus accrued interest.
- 4Funds for the redemption were sourced from the proceeds of Bloom Energy's 3.00% Green Convertible Senior Notes due 2028 issuance.
- 5The company and its guarantor are now released from their obligations related to the discharged notes and associated security documents.
- 6This action simplifies Bloom Energy's debt profile and potentially reduces future interest expenses.