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Bloom Energy Prices & Raises Size of Senior Notes Offering

Bloom Energy Corporation BE 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, Delek Logistics Partners, L.P. DKL and Linde plc LIN. 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.

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CNOOC Limited (CEO) : Free Stock Analysis Report
 
Delek Logistics Partners, L.P. (DKL) : Free Stock Analysis Report
 
Linde plc (LIN) : Free Stock Analysis Report
 
Bloom Energy Corporation (BE) : Free Stock Analysis Report
 
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