Edison-based Eos Energy Enterprises recently said several of its long-term investors, including Clear Creek Investments, Ardsley Advisory Partners and AltEnergy, made a $13.75 million investment in convertible senior notes to support the company’s strategic growth initiatives.
“We’re excited to have long-term investors in our company continue to support our growth and the plan to expand our manufacturing capacity,” Joe Mastrangelo, CEO of Eos, said. “AltEnergy has been an investor in the company for nearly a decade, and adding additional support from Clear Creek Investments and Ardsley Advisory Partners helps us position the company for the future.”
Eos is a leading manufacturer of long duration (3-12 hour) battery energy storage solutions featuring its proprietary Znyth battery technology. This zinc-powered battery addresses the variability of renewable energy sources by providing reliable power to applications across the energy supply chain, including utilities, and industrial and commercial sites.
Under the terms of the agreement, the investors are purchasing $13.75 million in aggregate principal amount of Eos’ 26.5% Convertible Senior PIK Notes due 2026. The notes will have an initial conversion price of approximately $1.67 per share of Eos’ common stock, subject to customary anti-dilution and other adjustments. The notes will bear interest at a rate of 26.5% per annum, paid semi-annually, which interest will be entirely paid-in-kind through an increase in the principal amount of the outstanding notes or through the issuance of additional notes. The notes will mature in June 2026, unless earlier converted, redeemed or repurchased.
Cowen acted as financial adviser to Eos, and Haynes and Boone LLP served as Eos’ legal adviser in the transaction.