Eos Energy plans $500 million convertible notes offering

EDISON, N.J. - Eos Energy Enterprises, Inc. (NASDAQ:EOSE) announced Tuesday its intention to offer $500 million in convertible senior notes due 2031 to qualified institutional buyers in a private offering. The energy storage company, currently valued at approximately $4 billion in market capitalization, has seen its stock surge over 500% in the past year despite experiencing high volatility, according to InvestingPro data.

The company also plans to grant initial purchasers an option to buy up to an additional $75 million in notes. The notes will be senior, unsecured obligations with interest payable semi-annually, maturing on December 1, 2031, unless earlier repurchased, redeemed or converted.

Noteholders will have conversion rights in certain circumstances, with Eos settling conversions through cash, shares of common stock, or a combination of both, at the company's discretion. However, until Eos increases its authorized shares or otherwise makes more shares available, all conversions will be settled entirely in cash.

The notes will be redeemable at Eos's option after December 5, 2028, subject to certain price and other conditions. The interest rate and initial conversion rate will be determined at pricing.

Concurrently, Eos announced plans for a registered direct offering of common stock to a limited number of purchasers. The company intends to use proceeds from both offerings to repurchase a portion of its outstanding 6.75% convertible senior notes due 2030 and for general corporate purposes. While Eos operates with a moderate level of debt and maintains a current ratio of 1.83 (indicating liquid assets exceed short-term obligations), InvestingPro analysis shows the company is not yet profitable, with a negative EBITDA of $211 million for the last twelve months.

Eos expects to enter into privately negotiated transactions with holders of the existing 2030 notes to repurchase a portion for cash, with terms dependent on market conditions and other factors.

The notes and any shares issuable upon conversion have not been registered under the Securities Act and cannot be offered or sold except pursuant to an exemption from registration requirements.

This information is based on a company press release statement.

In other recent news, Eos Energy Enterprises reported its third-quarter 2025 financial results, revealing a substantial net loss primarily due to non-cash fair value adjustments. Despite doubling its revenue from the previous quarter to $30.5 million, the company fell short of revenue forecasts and recorded a negative earnings per share of $4.91, which was significantly below the expected loss of $0.24. Additionally, Eos Energy has launched a $500 million convertible notes offering to qualified institutional buyers, with an option for initial purchasers to acquire an additional $75 million in notes. The company has also raised approximately $76.9 million from the exercise of around 6.7 million warrants, which expired on November 17, 2025. In a strategic move, Eos Energy has entered into a Joint Development Agreement with Bimergen Energy Corporation to advance battery energy storage projects. This partnership aims to leverage Eos's zinc-based battery technology to accelerate Bimergen's project development. These developments highlight Eos Energy's ongoing efforts to strengthen its financial position and expand its market presence.

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