ADVANCED ENERGY INDUSTRIES INC (AEIS): debt financing — Advanced Energy closes $575M 2.50% convertible senior notes due 2028; fully exercises initial purchasers' option

ADVANCED ENERGY INDUSTRIES INC

$575M aggregate principal of 2.50% convertible notes due 2028; initial purchasers' option fully exercised for extra $75M.
Net proceeds ~$561.2M; used $40.1M for convertible note hedges and $40M to repurchase 378,286 shares of common stock.
Initial conversion price ~$137.46 per share, a 30% premium over $105.74 closing price on Sept 7, 2023.
Company also entered warrant transactions with strike price ~$179.76 per share (70% premium); warrants may dilute EPS.
Proceeds intended for growth plans (including M&A), debt repayment, share repurchases, and general corporate purposes.

item 1.01 item 2.03 item 3.02 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

ADVANCED ENERGY INDUSTRIES INC incurred convertible notes of $575 million aggregate principal amount with initial purchasers at 2.50% per year maturing September 15, 2028.

Instrument: convertible notes
Principal: $575 million aggregate principal amount
Counterparty: initial purchasers
Rate: 2.50% per year
Maturity: September 15, 2028
Event: incurrence

Exact text from the filing

On September 12, 2023, Advanced Energy Industries, Inc. (the “Company”) completed its previously announced private unregistered offering of $575 million aggregate principal amount of its 2.50% Convertible Senior Notes due 2028 (the “Notes”), which amount includes the full exercise of the initial purchasers’ option to purchase up to $75 million aggregate principal amount of additional Notes.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 1.0

ADVANCED ENERGY INDUSTRIES INC entered into Indenture with U.S. Bank Trust Company, National Association valued at $575 million aggregate principal amount (effective 2023-09-12).

Action: entry
Agreement: notes offering
Counterparty: U.S. Bank Trust Company, National Association
Value: $575 million aggregate principal amount
Effective: 2023-09-12

Exact text from the filing

Indenture (the “Indenture”), dated as of September 12, 2023, by and between the Company and U.S. Bank Trust Company, National Association, as trustee

View on SEC.gov

41 debt financings filed in the last 30 days. Browse all debt financings →

ADVANCED ENERGY INDUSTRIES INC filing history →

Source: SEC EDGAR

accession 0001558370-23-015676

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