Bloom Energy greenshoe lifts 2.5% convertibles to $230 million

By Taylor Fox

New York, Aug. 13 – Bloom Energy Corp.’s initial purchaser exercised its option in full to purchase an additional $30 million of the company’s 2.5% green convertible senior notes due 2025, increasing the amount of the notes to $230 million, according to a news release.

As previously reported, Bloom Energy priced the convertible notes after the market close on Aug. 6 at par with a coupon of 2.5% and an initial conversion premium of 25%.

J.P. Morgan Securities LLC was the bookrunner for the Rule 144A offering.

The notes were marketed as green convertible notes.

They are non-callable until Aug. 21, 2023 and then subject to a 130% hurdle with a make-whole.

They are putable upon a fundamental change. There is dividend protection.

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

Proceeds will be used to repurchase the outstanding 10% convertible promissory notes due 2021 with remaining proceeds to be used to finance or refinance green projects.

Bloom Energy is a San Jose, Calif.-based green energy producer.

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