T1 Energy Inc. (NYSE:TE) stock is trading higher in Wednesday’s premarket session as the stock attempts to stabilize after a sharp pullback from its midyear highs.
Nasdaq futures were down 0.06%, while S&P 500 futures gained 0.04%.
T1 Energy Raises $50 Million for Austin Solar Plant
T1 Energy disclosed in a Tuesday filing with the Securities and Exchange Commission that it agreed to raise an additional $50 million through a private placement of convertible senior notes to help fund its G2_Austin Texas solar cell manufacturing facility.
The company entered into the note purchase agreement on Sunday, Sept. 28, with an existing shareholder that is also a new convertible notes investor. The deal is expected to close Wednesday, Sept. 30, subject to customary conditions.
T1 Energy expects gross proceeds of about $50.4 million before fees and expenses.
Funding Supports G2_Austin Expansion
The company plans to use the money for construction, infrastructure development and production-line equipment tied to Phase 1 of its G2_Austin solar cell fab. It may also use part of the proceeds for general corporate purposes.
T1 Energy described the financing as a bridge to a broader funding package that is expected to include a significant debt component. That financing would cover the remaining capital expenditures for Phase 1 of the Austin project.
T1 Energy Convertible Notes Rise to $170 Million
The new securities are additional 4.75% convertible senior notes due 2031. T1 Energy previously issued $120 million of the same notes on July 31.
Following the latest issuance, the total principal amount outstanding will rise to $170 million. The notes are senior unsecured obligations and mature on Aug. 1, 2031, unless they are repurchased, redeemed or converted earlier.
The initial conversion rate is 224.0143 shares per $1,000 of principal, implying an initial conversion price of about $4.46 per share. The company may settle conversions in cash, stock or a combination of both.
The filing also said the company could initially issue up to about 13.44 million shares under the maximum conversion rate, subject to customary anti-dilution adjustments.
Analyst Outlook
The stock carries a Buy consensus rating with an average price forecast of $9.20.
JPMorgan initiated coverage with a Neutral rating and a $5 price forecast on Sept. 14. BTIG maintained a Buy rating and raised its price forecast to $9 on Aug. 12. Needham maintained a Buy rating and lowered its price forecast to $7 on July 28.
T1 Energy Price Action
TE Stock Price Activity: T1 Energy shares were up 0.53% at $3.79 during Wednesday’s premarket trading, according to Benzinga Pro data.
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