Enovix greenshoe exercised, ups five-year convertibles $172.5 million

By William Gullotti

Buffalo, N.Y., April 21 – Underwriters for Enovix Corp.’s 3% five-year convertible notes fully exercised their $22.5 million greenshoe, increasing the total issue size of the deal to $172.5 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced the initial $150 million of the convertibles after the market close on April 18 at par with a coupon of 3% and an initial conversion premium of 15%.

Entities affiliated with Enovix chair Thurman J. Rodgers also purchased $10 million of the notes in a concurrent private placement.

As previously reported, the notes are non-callable until May 6, 2026 and are then subject to a 130% hurdle.

They are also putable upon a fundamental change.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Cantor Fitzgerald & Co. was the bookrunner.

Net proceeds from the aggregate offerings will be $165.7 million with the greenshoe exercised in full.

As previously reported and in connection with the offering, the company entered into capped call transactions with a cap price of $21.17, which represents a premium of 56% over the last reported sales price of stock. The company reported using $17.3 million of the net proceeds to pay the cost of the capped call.

Aside from the $17.3 million used to cover the call spread, proceeds will be used to fund the build-out of a second battery cell manufacturing facility and the acquisition of production line manufacturing equipment, and for general corporate purposes.

Enovix is a Fremont, Calif.-based advanced silicon-anode lithium-ion battery manufacturer.

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