Bloom Energy Corporation (NYSE:BE) traded lower on Friday after unveiling a large private offering of zero-coupon convertible notes due 2030.
The fuel cell maker priced $2.2 billion in total principal, up from $1.75 billion. Settlement is expected on November 4, 2025, pending standard closing conditions.
Bloom Energy is issuing senior, unsecured notes maturing on November 15, 2030.
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The securities carry no regular interest, and principal will not accrete. Noteholders may convert under certain conditions before August 15, 2030.
After that date, they may convert until shortly before maturity. Bloom Energy may settle conversions in cash, stock, or a mix.
Use Of Proceeds
Bloom Energy estimates net proceeds of about $2.16 billion, or $2.45 billion if the option is fully exercised. About $988.4 million will fund cash consideration for concurrent exchanges of older convertible notes.
The company expects to exchange $532.8 million of 2028 notes for cash and about 24.3 million shares.
It will also swap $443.1 million of 2029 notes for cash and roughly 18.1 million shares.
According to Benzinga Pro, BE stock has gained over 1,242% in the past year. Investors can gain exposure to the stock via the Global X Hydrogen ETF (NASDAQ:HYDR).
Recently, the firm announced third-quarter revenue of $519.05 million, handily beating analyst estimates of $424.98 million and representing a 57.1% increase year-over-year.
Bloom also reported adjusted earnings of 15 cents per share, beating expectations of 9 cents per share.
CEO KR Sridhar cited "powerful tailwinds" for the strong performance, including surging electricity demand driven by artificial intelligence and key strategic partnerships with companies like Oracle and Brookfield Asset Management. The company ended the quarter with a strong cash position of approximately $595 million.
Price Action: BE shares are trading higher by 0.41% to $128.62 at last check on Friday.
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