Advanced Energy completes $1.15 billion convertible notes offering

Advanced Energy Industries Inc. (NASDAQ: AEIS) completed its private offering of $1.15 billion aggregate principal amount of 0% Convertible Senior Notes due 2031, the company announced. The offering included the full exercise of initial purchasers' option to purchase an additional $150 million of notes.

The company received net proceeds of approximately $1.13 billion after deducting initial purchasers' discounts and offering expenses. Advanced Energy used $69 million of the proceeds for capped call transactions and approximately $442.4 million plus 1.98 million shares of common stock to exchange for $438.3 million aggregate principal amount of its existing 2.50% Convertible Senior Notes due 2028.

The notes do not bear regular interest and mature on May 15, 2031. The initial conversion rate is 1.9655 shares per $1,000 principal amount, equivalent to a conversion price of approximately $508.78 per share, representing a 50% premium over the May 13, 2026 closing stock price of $339.19.

Advanced Energy may redeem the notes for cash on or after May 21, 2029, if its stock price reaches at least 130% of the conversion price for 20 trading days during any 30 consecutive trading-day period. The company may also redeem all notes if less than 25% of the original amount remains outstanding.

The company entered into capped call transactions with initial purchasers and other financial institutions, with a cap price of $678.38 per share, representing a 100% premium over the May 13, 2026 stock price.

Advanced Energy plans to use remaining proceeds for general corporate purposes, including potential retirement of remaining 2028 convertible notes. The notes were offered to qualified institutional buyers under Rule 144A.

You May Also Be Interested In

• Advanced Energy to redeem $136.7 million convertible notes in 2026
• Momentus prices $25 million stock offering with institutional investors
• Mirum and Incyte report positive phase 2 results for FOP treatment