T1 Energy amends sales agency and preferred stock agreements

Published 14/08/2025, 11:44
T1 Energy amends sales agency and preferred stock agreements

T1 Energy Inc. (NYSE:TE), a $209 million market cap energy company trading at $1.34 per share, disclosed Wednesday that it has amended two key agreements, according to a statement based on a Securities and Exchange Commission filing. According to InvestingPro analysis, the company currently shows signs of being slightly undervalued despite facing some financial challenges.

The company’s subsidiary, T1 G1 Dallas Solar Module (Trina) LLC, and Trina Solar (U.S.), Inc. entered into an amendment to their existing sales agency and aftermarket services agreement. Under the amendment, any service fees due from T1 G1 Dallas Solar Module on or after August 13, 2025, will be deferred without interest. Payment of these fees will be required at the earlier of either 30 days after the company or its affiliates receive a cash payment related to any 45X Tax Credits, or August 15, 2026.

T1 Energy also amended its preferred stock purchase agreement with funds managed by Encompass Capital Advisors LLC. The agreement, originally signed in November 2024 and amended in March and April 2025, covers the purchase of $100 million in non-voting preferred stock, funded in two $50 million tranches.

The latest amendment, executed August 13, 2025, modifies several terms, including:

  • The “Second Tranche Closing Date” is now defined as 10 business days after T1 Energy notifies purchasers of its decision to exercise the second tranche option.
  • The “Conversion Price” for the second tranche has been updated to reflect different conversion prices for each tranche.
  • New definitions were added for terms such as “Trading Day,” “Trading Market,” “Principal Trading Market,” and “10-Day VWAP.”
  • The conditions for completing the second tranche now require certain financial statements, replacing a previous condition related to a final investment decision for a specific facility.
  • If T1 Energy issues preferred stock with a lower conversion price, it will adjust the second tranche’s conversion price to match, but not below $1.05 per share.
  • The amendment provides for warrants exercisable for 3,500,000 shares of T1 Energy common stock at $0.01 per share, which become exercisable if the second tranche closing does not occur by December 31, 2026.

T1 Energy’s common stock and warrants are listed on the New York Stock Exchange under the symbols TE and TE WS, respectively.

This information is based on a press release statement and the company’s SEC filing.

In other recent news, T1 Energy Inc. has made several notable announcements. The company reported a significant downward revision in its 2025 EBITDA guidance, adjusting it to a range of $30-$50 million from the previous $75-$125 million. This change comes amid strategic shifts and operational challenges the company is facing. In another development, T1 Energy has selected Yates Construction for an $850 million solar facility project in Milam County, Texas, expected to produce 5 gigawatts of solar cells by the end of 2026. Additionally, the company amended its credit agreement with HSBC Bank USA, reducing the balance required in its subsidiary’s debt service reserve account for a specified period. Shareholders recently approved the election of directors and the appointment of an auditor at the company’s annual meeting. T1 Energy also expressed support for the U.S. Secretary of Commerce’s investigation into foreign-sourced polysilicon, highlighting potential advantages from its existing contract for U.S.-made polysilicon.

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