Bloom Energy prices $2.2 billion convertible senior notes offering

SAN JOSE, Calif. - Bloom Energy Corporation (NYSE:BE), currently valued at $30.24 billion, announced the pricing of $2.2 billion in 0% convertible senior notes due 2030 in a private offering to qualified institutional buyers. The offering, initially set at $1.75 billion, was increased by $450 million, according to a company press release. The stock has seen remarkable momentum, with a 1,231% return over the past year.

The notes will mature on November 15, 2030, with settlement expected on November 4, 2025. Bloom Energy granted initial purchasers an option to purchase up to an additional $300 million in notes within 13 days of issuance.

The zero-interest notes will be senior, unsecured obligations with an initial conversion rate of 5.1290 shares of Class A common stock per $1,000 principal amount, representing a conversion price of approximately $194.97 per share. This reflects a 52.50% premium over the October 30 closing price of $127.85. According to InvestingPro data, Bloom Energy is currently trading significantly above its Fair Value, with extremely high valuation multiples including a P/E ratio of 2,000 and EV/EBITDA of 213.

Noteholders will have conversion rights upon specific events before August 15, 2030, and at any time thereafter until two trading days before maturity. The company may settle conversions in cash, shares, or a combination at its discretion.

Bloom Energy estimates net proceeds of approximately $2.16 billion, or $2.45 billion if the additional purchase option is exercised. The company plans to use about $988.4 million to fund concurrent exchanges of its existing convertible notes, with the remainder allocated for general corporate purposes, including research and development, manufacturing expansion, and capital expenditures. The company operates with a moderate debt level and maintains strong liquidity with a current ratio of 4.99, indicating its liquid assets comfortably exceed short-term obligations.

In separate transactions, Bloom Energy expects to exchange approximately $532.8 million of its 2028 Notes and $443.1 million of its 2029 Notes for a combination of cash and Class A common stock.

The notes and related shares have not been registered under the Securities Act and cannot be offered or sold except pursuant to applicable exemptions from registration requirements.

In other recent news, Bloom Energy Corp. announced its intention to offer $1.75 billion in zero-interest convertible senior notes due 2030. The company plans to grant initial purchasers an option to buy an additional $250 million in notes. In related developments, Bloom Energy is in negotiations for a potential $600 million revolving credit facility, though no agreements have been finalized. HSBC has upgraded Bloom Energy from Hold to Buy, citing the company's growth in AI data centers and hydrogen energy solutions. Additionally, TD Cowen raised its price target for Bloom Energy to $105 from $65, maintaining a Hold rating. This decision follows Bloom Energy's third-quarter 2025 earnings report, which exceeded analyst expectations, with related party revenue making up about 55% of total revenue. These recent developments provide investors with a comprehensive view of Bloom Energy's financial strategies and market positioning.

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