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EDISON, N.J. - Eos Energy Enterprises, Inc. (NASDAQ: EOSE), a U.S.-based energy storage solution provider with a market capitalization of $1.03 billion, has priced a significant public offering of common stock. The announcement comes amid a challenging period for the company’s stock, which has declined 29% in the past week despite showing strong momentum with a 53% gain over the last six months.InvestingPro analysis indicates the stock is currently trading below its Fair Value, with additional volatility metrics and 15+ key insights available to subscribers. The company announced today that it will offer 18,750,000 shares at $4.00 per share. Additionally, underwriters have been granted a 30-day option to purchase up to 2,812,500 additional shares. The offering is expected to close on June 2, 2025, subject to customary closing conditions.
The net proceeds from the offering are projected to be $70.5 million, or $81.1 million if the underwriters’ option is exercised in full, after underwriting discounts and commissions. With a current ratio of 2.05, indicating solid short-term liquidity, Eos Energy plans to use these funds, along with the proceeds from a separate note offering, for several financial maneuvers. These include repurchasing $126 million of convertible senior notes due in 2026 for approximately $131 million, prepaying $50 million of outstanding borrowings under a credit agreement, and for general corporate purposes. The prepayment will result in a reduction of the PIK interest rate from 15% to 7% and a waiver of financial covenants until 2027 under the credit agreement.
Eos Energy’s stock offering is not contingent upon the completion of its separate private offering of $225 million in convertible senior notes due 2030, which also includes an option for initial purchasers to buy an additional $25 million in notes. The notes offering is scheduled to settle on June 3, 2025.
The company has engaged Jefferies and J.P. Morgan as joint lead book-running managers for the stock offering. Other financial institutions, including TD Cowen, Stifel, and Johnson Rice & Company, are also involved in various capacities.
This stock offering is made under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC), and the securities are offered by means of a prospectus supplement and accompanying prospectus. Potential investors are encouraged to read these documents, which are available on the SEC’s website, for more detailed information about the company and the offering.
Eos Energy, founded in 2008 and headquartered in Edison, New Jersey, specializes in energy storage with its Znyth™ aqueous zinc battery technology, providing alternatives to conventional lithium-ion batteries for utility, industrial, and commercial customers. The company has demonstrated revenue growth of 37.6% in the last twelve months, though it faces challenges with profitability.Get comprehensive insights into Eos Energy’s financial health, growth prospects, and detailed valuation analysis through the InvestingPro Research Report, part of our coverage of 1,400+ US stocks.
This news report is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. The company cautions that the proposed offerings may not be consummated and that the proceeds may not be applied as described.
In other recent news, Eos Energy Enterprises announced plans for a significant capital raise through a $175 million convertible notes offering and a proposed $75 million common stock offering. The proceeds from these offerings are intended for various corporate purposes, including repurchasing existing convertible notes, prepaying a portion of its credit agreement, and general corporate expenses. The company has also secured amended credit agreement terms, allowing it to issue and sell common stock and/or convertible notes, with specific conditions and deadlines for these transactions. In addition, Eos Energy has entered into a Limited Consent Agreement with the U.S. Department of Energy, permitting these financial maneuvers.
The offerings are subject to market conditions, and there is no certainty regarding their completion or terms. Furthermore, Eos Energy has announced a repeat order for its zinc-based Eos Z3™ system for a microgrid project in California, supported by the California Energy Commission. This project marks the company’s eighth collaboration with the commission and aims to enhance energy resilience and provide backup power. These developments reflect Eos Energy’s strategic efforts to strengthen its financial position and expand its market presence.
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