Energy storage co Stem prices USD 400m green notes offering

Energy storage solutions provider Stem Inc (NYSE:STEM) on Thursday priced an upsized offering of USD 400 million (EUR 354m) worth of green convertible senior notes due 2028 to qualified institutional buyers.

The notes sale is expected to settle on November 22. The initial purchasers have the option to buy up to an additional USD 60 million in notes on the same terms and conditions within a 13-day period from the issuance date. The company initially planned to offer notes with an aggregate principal amount of only USD 350 million.

Stem plans to use the net proceeds from the offering to finance or refinance existing or new “eligible green expenditures” such as investments related to establishing a more resilient clean energy system, optimised software capabilities for energy systems, and waste reduction activities. It noted that a portion of the proceeds will fund the cost of entering into certain capped call transactions.

The notes, which will accrue interest payable semi-annually in arrears, will mature on December 1, 2028, unless earlier repurchased, redeemed or converted into cash, shares of common stock of Stem or a combination thereof.

(USD 1.0 = EUR 0.885)

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