Bloom Energy discusses possible $600 million revolving credit facility

Bloom Energy Corp (NYSE:BE) disclosed Thursday that it is in negotiations for a senior secured credit facility that could provide up to $600 million in revolving commitments. According to a statement in a press release filed with the U.S. Securities and Exchange Commission, the company has not yet finalized any agreements regarding the facility.

The proposed revolving credit facility is expected to include standard covenants and conditions. These may limit Bloom Energy’s ability to take on additional debt, place liens on assets, make certain investments or asset sales, engage in specific transactions with affiliates, or pay dividends and distributions.

Bloom Energy stated that it intends to use any proceeds from the credit facility for general corporate purposes, including funding working capital. The company emphasized that the terms of the financing are still under discussion and could change based on market conditions.

The company noted that there is no assurance it will enter into the proposed revolving credit facility or that the final terms will match those currently under discussion.

This information is based on a press release statement included in Bloom Energy’s SEC filing.

In other recent news, Bloom Energy Corporation announced a $1.75 billion offering in zero-interest convertible senior notes due 2030, with an option for an additional $250 million. This move is aimed at qualified institutional buyers, with the notes set to mature on November 15, 2030. HSBC upgraded Bloom Energy’s stock rating from Hold to Buy, citing the company’s promising position in AI data centers and hydrogen energy solutions. Following Bloom Energy’s third-quarter earnings report, which exceeded expectations, TD Cowen raised its price target from $65 to $105 while maintaining a Hold rating. The earnings report revealed a 57% year-over-year revenue increase to $519 million, with gross margins at 30.4%, driven by AI-related data center deployments. Despite these results, Bank of America Securities maintained an Underperform rating with a $26 price target. Oppenheimer kept a Perform rating, highlighting Bloom Energy’s DC/DC power conversion capabilities amid data center power shortages. These developments underscore Bloom Energy’s strategic maneuvers and market positioning in the evolving energy sector.

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