We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bloom Energy Prices & Raises Size of Senior Notes Offering
Read MoreHide Full Article
Bloom Energy Corporation (BE - Free Report) announced the successful completion of pricing its $200 million aggregate principal offering. Evidently, the current offering size is increased from the initial offering of $135 million. The issuance and the sale of notes are expected to be settled today, subject to customary closing conditions.
Details of the Issuance
The 2.50% green convertible senior, unsecured notes will be due on Aug 15, 2025. The notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 as amended (the Securities Act).
The interest due on Feb 15 and Aug 15 of each year, is payable on a semi-annual basis commencing Feb 15, 2021.
Benefits
Bloom Energy anticipates the net proceeds from this offering to be $193.1 million (or $222.2 million if the initial purchaser exercises the option of buying additional notes in full) after deducting the initial purchaser’s discounts and commissions, and the estimated offering expenses.
The company plans to use $96.6 million of the net proceeds to redeem a portion of its outstanding 10% convertible promissory notes due 2021 and $82.2 million of the same to redeem its outstanding 10% senior secured notes due 2024. The remainder of the funds generated will be used for other business purposes including research and development work, sales and marketing activities, general and administrative matters, and capital expenditures.
Since the company will be utilizing proceeds from a low-interest bearing notes to redeem its high-interest bearing notes, it will save on annual interest costs.
In the past six months, shares of the company have rallied 24.5% against the industry’s 11.4% decline.
Other Stocks to Consider
A few other stocks worth considering from the sector are CNOOC Limited (CEO - Free Report) , Delek Logistics Partners, L.P. (DKL - Free Report) and Linde plc (LIN - Free Report) . While CNOOC and Delek Logistics flaunt a Zacks Rank#1, Linde carries a Zacks Rank of 2 at present.
The long-term (three-five years) earnings growth rate for CNOOC is pegged at 6.65%. The Zacks Consensus Estimate for 2020 earnings has been revised 49.8% upward in the past 30 days.
The Zacks Consensus Estimate for Delek Logistics’ 2020 earnings has moved 3% north over the past 30 days. It has a trailing four-quarter earnings surprise of 11.01%, on average.
Linde’s long-term earnings growth rate stands at 11%. It has a trailing four-quarter earnings surprise of 7.54%, on average.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Image: Shutterstock
Bloom Energy Prices & Raises Size of Senior Notes Offering
Bloom Energy Corporation (BE - Free Report) announced the successful completion of pricing its $200 million aggregate principal offering. Evidently, the current offering size is increased from the initial offering of $135 million. The issuance and the sale of notes are expected to be settled today, subject to customary closing conditions.
Details of the Issuance
The 2.50% green convertible senior, unsecured notes will be due on Aug 15, 2025. The notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 as amended (the Securities Act).
The interest due on Feb 15 and Aug 15 of each year, is payable on a semi-annual basis commencing Feb 15, 2021.
Benefits
Bloom Energy anticipates the net proceeds from this offering to be $193.1 million (or $222.2 million if the initial purchaser exercises the option of buying additional notes in full) after deducting the initial purchaser’s discounts and commissions, and the estimated offering expenses.
The company plans to use $96.6 million of the net proceeds to redeem a portion of its outstanding 10% convertible promissory notes due 2021 and $82.2 million of the same to redeem its outstanding 10% senior secured notes due 2024. The remainder of the funds generated will be used for other business purposes including research and development work, sales and marketing activities, general and administrative matters, and capital expenditures.
Since the company will be utilizing proceeds from a low-interest bearing notes to redeem its high-interest bearing notes, it will save on annual interest costs.
Zacks Rank & Price Performance
The stock currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past six months, shares of the company have rallied 24.5% against the industry’s 11.4% decline.
Other Stocks to Consider
A few other stocks worth considering from the sector are CNOOC Limited (CEO - Free Report) , Delek Logistics Partners, L.P. (DKL - Free Report) and Linde plc (LIN - Free Report) . While CNOOC and Delek Logistics flaunt a Zacks Rank#1, Linde carries a Zacks Rank of 2 at present.
The long-term (three-five years) earnings growth rate for CNOOC is pegged at 6.65%. The Zacks Consensus Estimate for 2020 earnings has been revised 49.8% upward in the past 30 days.
The Zacks Consensus Estimate for Delek Logistics’ 2020 earnings has moved 3% north over the past 30 days. It has a trailing four-quarter earnings surprise of 11.01%, on average.
Linde’s long-term earnings growth rate stands at 11%. It has a trailing four-quarter earnings surprise of 7.54%, on average.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>