Fluence Energy Announces Issuance of Convertible Senior Notes due 2030 (NASDAQ:FLNC)

Fluence Energy, Inc. recently disclosed its issuance of $400,000,000 aggregate principal amount of 2.25% Convertible Senior Notes due 2030 on December 12, 2024. The Notes, governed by an indenture between Fluence Energy and UMB Bank, National Association, as trustee, include additional notes issued through the exercise of the initial purchasers’ option, totaling $50,000,000.

These Notes represent senior, unsecured obligations of the company, inherently equal in right of payment with existing and future senior unsecured indebtedness of Fluence Energy. Scheduled interest payments at an annual rate of 2.25% will commence on June 15, 2025, with semi-annual payments due thereafter. The Notes will mature on June 15, 2030, offering note-holders conversion options under specific conditions, such as stock price thresholds and corporate events detailed in the indenture terms.

Moreover, in conjunction with the Notes offering, Fluence Energy engaged in capped call transactions to mitigate potential dilution and manage cash payments related to the Notes. This strategic maneuver involved the establishment of capped call transactions with select financial entities, aimed at covering shares of the company’s Class A common stock underlying the Notes.

Additionally, Fluence Energy indicated plans to allocate a portion of the proceeds from this offering towards entering the capped call transactions and transferring the balance to fund an intercompany subordinated convertible promissory note by Fluence Energy, LLC. The proceeds from this note are intended for usage in various operational aspects, including working capital needs and upgrading a specific battery cell production line.

Notably, the Notes and potential shares of Class A common stock that may arise through Notes conversion have not been registered under the Securities Act of 1933. These securities can solely be offered and sold to qualified institutional buyers under Rule 144A.

In closing, a detailed press release on the completion of the Notes offering was disseminated by Fluence Energy on December 12, 2024, underscoring the closure of this financial transaction. For a comprehensive analysis along with associated risks and forward-looking disclosures, individuals are encouraged to review Fluence Energy’s regulatory filings and official press release.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Fluence Energy’s 8K filing here.

About Fluence Energy

Fluence Energy, Inc, through its subsidiaries, offers energy storage products and solution, services, and artificial intelligence enabled software-as-a-service products for renewables and storage applications in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company sells energy storage products with integrated hardware, software, and digital intelligence.