Bloom Energy Corporation (NYSE:BE) plans to offer USD 500 million (EUR 454m) worth of green convertible senior notes due 2028, it announced on Thursday, a couple of days after reporting record first-quarter (Q1) revenue.
The company, provider of a distributed generation (DG) solid-oxide platform and electrolysers for hydrogen production, said in a statement it will offer the notes to qualified institutional buyers and that it will grant the initial purchasers an option to buy up to an additional USD 75 million of those senior, unsecured obligations.
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The notes will accrue interest payable semi-annually in arrears. They will mature on June 1, 2028, unless earlier repurchased, redeemed or converted.
Bloom Energy said it will use a portion of the proceeds from the private offering to redeem all of the USD-57.6-million outstanding principal amount of its 10.25% Senior Secured Notes due 2027. Another portion will go for general corporate purposes, including research and development (R&D) and sales and marketing activities, general and administrative matters, and capital expenditures. The rest should fund the cost of entering into certain capped call transactions.
Earlier in the week, the company posted an operating loss of USD 65.7 million on record revenue of USD 275.2 million for the first quarter of 2023. The year-ago figures were a loss of USD 65.7 million and a top line of USD 201 million. Its gross margin increased by 5.8 percentage points to 19.7%.
“We had record first quarter revenue driven by strong domestic acceptances. Our margins improved as we maintained price while reducing our product costs. We are reaffirming our 2023 framework for revenue and profitability,” stated president and CFO Greg Cameron.
(USD 1.0 = EUR 0.908)