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HOUSTON - Space exploration company Intuitive Machines, Inc. (NASDAQ:LUNR), which currently holds more cash than debt on its balance sheet according to InvestingPro data, announced Wednesday the pricing of $300 million in convertible senior notes due 2030, an increase from the previously announced $250 million offering size. The company maintains a healthy liquidity position with a current ratio of 3.7x, indicating strong ability to meet short-term obligations.
The 2.500% notes, offered to qualified institutional buyers under Rule 144A, will mature on October 1, 2030. Intuitive Machines granted initial purchasers an option to buy up to an additional $45 million in notes within a 13-day period.
The company expects to close the offering on August 18, 2025, subject to customary conditions. Net proceeds are estimated at approximately $291.8 million, or $335.5 million if the additional purchase option is fully exercised.
Intuitive Machines plans to use about $32 million of the proceeds to fund capped call transactions with financial institutions, which are designed to reduce potential dilution to its Class A common stock upon conversion of the notes. The remainder will fund general corporate purposes, including operations, research and development, and potential acquisitions.
The notes will convert at an initial rate of 76.2631 shares per $1,000 principal amount, equivalent to a conversion price of approximately $13.11 per share. This represents a 25% premium over the company’s last reported share price of $10.49 on August 13. Based on InvestingPro Fair Value analysis, the stock appears slightly overvalued at current levels, with analysts setting price targets ranging from $10.50 to $19.00 per share.
Intuitive Machines, which successfully landed a lunar lander on the Moon earlier this year and completed a second lunar south pole mission in 2025, will have the option to settle conversions in cash, shares, or a combination at its discretion.
The notes will not be redeemable at the company’s option before October 6, 2028. The securities are being offered through a private placement and have not been registered under the Securities Act.
According to the press release statement, the company describes itself as focused on "fundamentally disrupting lunar access economics" through its delivery services, data transmission services, and infrastructure offerings. While revenue grew significantly by 43% in the last twelve months, InvestingPro analysis reveals the company faces profitability challenges with negative EBITDA of $58.4 million. Discover more insights about LUNR and other space technology companies with InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.
In other recent news, Intuitive Machines reported its second-quarter 2025 earnings, which fell short of analyst expectations. The company announced an earnings per share (EPS) of -$0.045, missing the projected $0.01. Additionally, revenue for the quarter was $50.3 million, significantly below the anticipated $68.46 million. In another development, Intuitive Machines plans to offer $250 million in convertible senior notes due 2030 to qualified institutional buyers. These notes will be unsecured and interest will be payable semiannually, with a maturity date of October 1, 2030, unless converted, redeemed, or repurchased earlier. The company has also provided initial purchasers an option to acquire an additional $37.5 million in notes. These recent developments reflect Intuitive Machines’ efforts to navigate financial challenges while pursuing strategic financial offerings.
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