Eos Energy Enterprises, Inc., a leading provider of safe, scalable, efficient, and sustainable zinc-powered energy storage systems, has announced that Koch Strategic Platforms (“KSP”), a subsidiary of Koch Investments Group, will make a $100 million investment in convertible senior notes to support the Company’s strategic growth initiatives.
“As we continue to build out our commercial team, expand our opportunity pipeline and optimize our manufacturing processes and technology, it will be extremely helpful to have an experienced and proven strategic partner that recognizes the tremendous market opportunity we have ahead of us,” said Joe Mastrangelo, CEO of Eos. “Koch brings a strong track record of investing in disruptive technology companies and we look forward to deploying this capital to accelerate growth and continue to drive shareholder value.”
“Long duration energy storage is quickly emerging as a critical component of the renewable energy value chain,” said Jeremy Bezdek, managing director of Koch Strategic Platforms. “Eos’ world-class leadership team and versatile technology provide us with great confidence in the Company’s future growth and ability to succeed in this rapidly growing market.”
Eos is a leading manufacturer of long duration (3-12 hour) energy storage solutions featuring its proprietary Znyth® 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. Eos’s Pittsburgh-based manufacturing facility, suite of support services and majority domestically sourced supply chain, enable it to scale up its production to serve the needs of customers and communities around the world.
Terms of the Transaction
Under the terms of the investment, a subsidiary of KSP will purchase $100 million in aggregate principal amount of Eos’ convertible senior notes (the “Notes”). The Notes will have an initial conversion price of approximately $20.00 per share of Eos’ Common Stock (the “Common Stock”), subject to customary anti-dilution adjustments. Eos will settle its conversion obligations through the delivery of shares of Common Stock, cash, or a combination of cash and shares of Common Stock, at Eos’ election. The Notes will mature in June 2026, unless earlier repurchased, redeemed or converted. Interest on the Notes will be paid semi-annually, and Eos is permitted to pay interest on the Notes in cash or through the issuance of additional Notes, at its election. Interest payments made in cash will be based on an interest rate of 5.0% per year, and interest payments made by issuing additional Notes will be based on an interest rate of 6.0% per year.
Additional information regarding this announcement may be found in a Form 8-K that will be filed with the U.S. Securities and Exchange Commission.
