Eos Energy Enterprises, Inc. Announces Proposed Offering of Common Stock
Eos Energy Enterprises (NASDAQ: EOSE) has announced a proposed $75 million common stock offering with an additional 30-day option for underwriters to purchase up to $11.25 million of common stock. Simultaneously, the company plans a separate private offering of $175 million convertible senior notes due 2030, with an additional $26.25 million option for initial purchasers.
The net proceeds will be used to: repurchase outstanding 5%/6% Convertible Senior PIK Toggle Notes due 2026, prepay portion of credit agreement with CCM Denali Debt Holdings, and for general corporate purposes. Upon $50 million prepayment, the PIK interest rate will decrease from 15% to 7%, with financial covenants waived until 2027. Jefferies and J.P. Morgan are acting as joint lead book-running managers for the offering.
Eos Energy Enterprises (NASDAQ: EOSE) ha annunciato una proposta di offerta di azioni ordinarie da 75 milioni di dollari, con un'opzione aggiuntiva di 30 giorni per gli underwriter di acquistare fino a 11,25 milioni di dollari di azioni ordinarie. Contemporaneamente, la società prevede un'offerta privata separata di note convertibili senior da 175 milioni di dollari con scadenza 2030, con un'opzione aggiuntiva di 26,25 milioni di dollari per gli acquirenti iniziali.
I proventi netti saranno utilizzati per: riacquistare le note convertibili senior PIK Toggle al 5%/6% in scadenza nel 2026, rimborsare parzialmente il credito con CCM Denali Debt Holdings e per scopi aziendali generali. Al raggiungimento di un rimborso di 50 milioni di dollari, il tasso di interesse PIK scenderà dal 15% al 7%, con la sospensione dei covenant finanziari fino al 2027. Jefferies e J.P. Morgan agiscono come joint lead book-running manager per l'offerta.
Eos Energy Enterprises (NASDAQ: EOSE) ha anunciado una propuesta de oferta de acciones comunes por 75 millones de dólares, con una opción adicional de 30 días para que los suscriptores compren hasta 11,25 millones de dólares en acciones comunes. Simultáneamente, la compañía planea una oferta privada separada de notas convertibles senior por 175 millones de dólares con vencimiento en 2030, con una opción adicional de 26,25 millones de dólares para los compradores iniciales.
Los ingresos netos se utilizarán para: recomprar las Notas Senior PIK Toggle Convertibles al 5%/6% que vencen en 2026, prepagar parte del acuerdo de crédito con CCM Denali Debt Holdings y para propósitos corporativos generales. Tras un prepago de 50 millones de dólares, la tasa de interés PIK disminuirá del 15% al 7%, con la exención de los convenios financieros hasta 2027. Jefferies y J.P. Morgan actúan como gestores conjuntos principales del libro para la oferta.
Eos Energy Enterprises (NASDAQ: EOSE)는 7,500만 달러 규모의 보통주 공모를 제안했으며, 인수인에게 추가로 3,750만 달러(1,125만 달러 추가 옵션 포함)까지 보통주를 매입할 수 있는 30일 옵션을 제공합니다. 동시에 회사는 2030년 만기 1억 7,500만 달러 규모의 전환사채 선순위채권을 별도로 사모로 발행할 계획이며, 초기 매수자에게 2,625만 달러 추가 옵션이 부여됩니다.
순수익은 2026년 만기 5%/6% 전환 선순위 PIK 토글 노트를 재매입하고, CCM Denali Debt Holdings와의 신용계약 일부를 조기 상환하며, 일반 기업 목적에 사용할 예정입니다. 5,000만 달러 조기 상환 시 PIK 이자율은 15%에서 7%로 감소하며, 2027년까지 재무 약정은 면제됩니다. 이번 공모의 공동 대표 주관사는 Jefferies와 J.P. Morgan입니다.
Eos Energy Enterprises (NASDAQ : EOSE) a annoncé une proposition d'offre d'actions ordinaires de 75 millions de dollars, avec une option supplémentaire de 30 jours permettant aux souscripteurs d'acheter jusqu'à 11,25 millions de dollars d'actions ordinaires. Parallèlement, la société prévoit une offre privée distincte de obligations convertibles senior de 175 millions de dollars arrivant à échéance en 2030, avec une option supplémentaire de 26,25 millions de dollars pour les premiers acheteurs.
Le produit net sera utilisé pour : racheter les billets à intérêt en nature (PIK) convertibles senior à 5 %/6 % arrivant à échéance en 2026, rembourser une partie du crédit avec CCM Denali Debt Holdings et pour des besoins généraux d'entreprise. Après un remboursement anticipé de 50 millions de dollars, le taux d'intérêt PIK passera de 15 % à 7 %, avec une dispense des engagements financiers jusqu'en 2027. Jefferies et J.P. Morgan agissent en tant que chefs de file conjoints pour cette offre.
Eos Energy Enterprises (NASDAQ: EOSE) hat ein geplantes Aktienangebot im Wert von 75 Millionen US-Dollar angekündigt, mit einer zusätzlichen 30-tägigen Option für Underwriter, bis zu 11,25 Millionen US-Dollar an Stammaktien zu erwerben. Gleichzeitig plant das Unternehmen eine separate Privatplatzierung von wandlungsfähigen Senior Notes über 175 Millionen US-Dollar mit Fälligkeit 2030, mit einer zusätzlichen Option von 26,25 Millionen US-Dollar für Erstkäufer.
Die Nettoerlöse werden verwendet, um ausstehende 5%/6% Convertible Senior PIK Toggle Notes mit Fälligkeit 2026 zurückzukaufen, einen Teil des Kreditvertrags mit CCM Denali Debt Holdings vorzeitig zu tilgen und für allgemeine Unternehmenszwecke. Nach einer Vorabtilgung von 50 Millionen US-Dollar sinkt der PIK-Zinssatz von 15% auf 7%, wobei die finanziellen Auflagen bis 2027 ausgesetzt werden. Jefferies und J.P. Morgan fungieren als gemeinsame leitende Konsortialführer für das Angebot.
- PIK interest rate will decrease significantly from 15% to 7% after $50M prepayment
- Financial covenants will be waived until 2027
- Potential total capital raise of up to $287.5M through combined offerings
- Debt restructuring could improve company's financial flexibility
- Significant dilution for existing shareholders through $75M common stock offering
- Additional debt burden through $175M convertible notes offering
- Current high PIK interest rate of 15% indicates expensive debt financing
- Multiple simultaneous offerings may signal cash flow concerns
Insights
Eos is raising $250M through stock and convertible notes to refinance debt, significantly reducing interest burden and improving covenant flexibility.
Eos Energy is executing a $250 million capital raise through two simultaneous offerings: a $75 million common stock offering and a $175 million convertible senior notes offering due 2030. The strategic financial maneuver targets three objectives:
The most critical aspect is the planned $50 million prepayment toward their existing credit agreement with CCM Denali, which triggers two substantial benefits: reducing the payment-in-kind interest rate from an extremely burdensome 15% to a more manageable 7%, and securing a waiver of financial covenants until 2027. This debt restructuring creates significant breathing room for Eos by cutting interest expenses and removing near-term covenant pressure.
Additionally, funds will repurchase outstanding convertible notes due 2026 and provide working capital. The underwriter structure with Jefferies and J.P. Morgan as joint lead book-runners suggests strong institutional backing. CCM Denali's agreement to restrict transfers of securities until June 2026 demonstrates alignment with this recapitalization.
While dilutive to existing shareholders, this comprehensive refinancing addresses Eos's debt burden with cheaper capital while extending maturities. The dual-track offering provides flexibility as neither offering is contingent on the other's completion, though maximum benefit comes from completing both. Most importantly, the substantial PIK interest rate reduction represents a critical improvement to Eos's financial structure that could significantly reduce cash burn rate.
EDISON, N.J., May 29, 2025 (GLOBE NEWSWIRE) -- Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos” or the “Company”) today announced that it has commenced a
Eos expects to use the net proceeds from the Offering, together with the net proceeds from the offering of the notes referred to below, if it is consummated, (i) to repurchase its outstanding
In a separate press release, Eos also announced today its intention to offer, in a separate, private offering to persons reasonably believed to be qualified institutional buyers, subject to market and other conditions,
Jefferies and J.P. Morgan are acting as joint lead book-running managers for the Offering.
The Company is conducting the Offering pursuant to an effective shelf registration statement, including a base prospectus, under the Securities Act of 1933, as amended. The Offering is being made only by means of a separate prospectus supplement and the accompanying prospectus. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the Offering may be obtained by contacting Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388 or by email at prospectus_department@jefferies.com; and J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com. Before you invest in the Offering, you should read the applicable prospectus supplement relating to the Offering and accompanying prospectus, the registration statement and the other documents that the Company has filed with the Securities and Exchange Commission as incorporated by reference therein, for more complete information about the Company and the Offering. Investors may obtain these documents for free by visiting the SEC’s website at www.sec.gov.
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Eos Energy Enterprises
Eos Energy Enterprises, Inc. is accelerating the shift to American energy independence with positively ingenious solutions that transform how the world stores power. Our breakthrough Znyth™ aqueous zinc battery was designed to overcome the limitations of conventional lithium-ion technology. It is safe, scalable, efficient, sustainable, manufactured in the U.S., and the core of our innovative systems that today provides utility, industrial, and commercial customers with a proven, reliable energy storage alternative for 3 to 12-hour applications. Eos was founded in 2008 and is headquartered in Edison, New Jersey.
Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the anticipated terms of the notes being offered, the completion, timing and size of the proposed offering and the intended use of the proceeds. Forward-looking statements represent Eos’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of Eos’s common stock and risks relating to Eos’s business, including those described in periodic reports that Eos files from time to time with the SEC. Eos may not consummate the proposed offering described in this press release and, if the proposed offering are consummated, cannot provide any assurances regarding the final terms of the offering or the notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Eos does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.
Contacts Investors: ir@eose.com Media: media@eose.com
FAQ
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