Eos Energy Successfully Closed $336M in Concurrent Offerings of Common Stock and Convertible Senior Notes, Strengthening its Balance Sheet and Creating Enhanced Financial Flexibility
Simplified capital structure bolsters ability to rapidly meet customer demand, reduce interest expense, and increase liquidity
Continues to scale operations with order for its second state-of-the-art battery module manufacturing line
EDISON, N.J., June 16, 2025 (GLOBE NEWSWIRE) -- Eos Energy Enterprises, Inc. (NASDAQ: EOSE) ('Eos' or the 'Company'), America's leading innovator in the design, sourcing, and manufacturing of zinc-based long duration energy storage (LDES) systems, manufactured in the United States, announced the closing of the full exercise of the initial purchasers' option to purchase additional notes in connection with its convertible senior notes due 2030 offering. Following the exercise of the option, $250 million aggregate principal amount of convertible senior notes due 2030 were outstanding. This announcement follows the Company's successful closing of its concurrent offerings of common stock (including a full exercise of the underwriters' option to purchase additional shares) and convertible senior notes due 2030.
These transformative transactions mark a critical inflection point that unlocks the financial flexibility required to scale operations to meet long duration energy storage global demand. The offerings were significantly oversubscribed, demonstrating strong investor confidence in Eos' market potential and progress against its strategic plan.
'We proactively capitalized on favorable market conditions to strengthen our financial position and play offense on long term growth,' said Nathan Kroeker, Eos Chief Commercial Officer and Interim Chief Financial Officer. 'Amid this opportunity, we strategically repurchased the maturing 2026 convertible note, lowered our cost of capital on the Cerberus term loan, and enhanced liquidity, putting us in an ideal position to capture the growing demand for long duration energy storage.'
The capital infusion strengthens Eos' ability to execute its growth strategy and increases strategic flexibility by reducing the weighting at the top of its capital stack. It also allowed the Company to restructure key portions of its debt, materially lowering its cost of capital while strengthening its balance sheet, with the overall transaction resulting in approximately $400 million in savings over the terms of the Company's debt.
'This was more than a capital raise – it strategically positions the Company to achieve our long-term objectives,' said Joe Mastrangelo, Chief Executive Officer of Eos. 'Improving our capital structure provides the tools required to operationally position the Company for growth. A stronger balance sheet combined with an improved capital cost structure, allows Eos to deliver for its customers, and build long-term shareholder value.'
Use of Proceeds and Strategic Debt Restructuring
Proceeds from the transactions were used to:
Fully repurchase the Company's $125.9 million 5%/6% Convertible Senior PIK Toggle Note due 2026 for $131 million, saving Eos $8.3 million in incremental interest that would have been owed upon maturity. Pursuant to the terms of the repurchase agreement, the Company subsequently received a $5 million reimbursement of the purchase price from the holder.
Prepay $50 million of outstanding borrowings due under the Company's Delayed Draw Term Loan (DDTL) between Eos and an affiliate of Cerberus Capital Management LP ('Cerberus'), and
Add approximately $139 million in cash to the balance sheet net of purchaser discounts, prior to the deduction of expenses.
The $50 million prepayment on the DDTL resulted in key benefits:
Reduced the interest rate on the remaining DDTL from 15% to 7%, significantly lowering the Company's cost of capital.
Deferred the EBITDA and revenue financial covenants on the DDTL and DOE to begin March 31, 2027, allowing the Company to focus on scaled growth.
Extended the lock-up period on Cerberus held securities by one year to June 21, 2026, further aligning long-term shareholder interests.
Waived call protection provisions, saving the Company $28.7 million in prepayment expense.
Eos is currently working to obtain approval from the U.S. Department of Energy's Loan Programs Office (DOE) for the next funding advance under tranche 1 of its DOE guaranteed loan.
Operational Momentum and Manufacturing Expansion
Eos recently submitted the purchase order for its second state-of-the-art manufacturing line that is expected to be operational in the first half of 2026. This marks a pivotal milestone in the Company's plan to scale domestic production in response to strong U.S. and international demand. In parallel, Eos is in the process of installing and commissioning its first bi-polar sub-assembly, an automation enhancement expected to drive significant improvements in throughput and production efficiency.
Year-to-date, Eos has shipped more energy storage cubes than in all of 2024, with Q2 shipments surpassing Q1, reflecting strong manufacturing execution. This momentum is expected to continue throughout the remainder of the year, supported by meaningful output gains as the Company brings all its terminal and bi-polar sub-assembly automation fully online during the third quarter.
System Performance and Field Integration
As production capacity increases, Eos continues to invest in the innovation engine driving its technology roadmap. At its R&D facility in Edison, New Jersey, Francis Richey, Chief Technology Officer, and Pranesh Rao, Senior Vice President Storage Systems Engineering, and team are pioneering advancements that are reshaping long duration energy storage.
Introduced during the Company's December 2023 strategic outlook call, Eos has made substantial progress on two foundational components of its Z3 energy storage system: its proprietary American-made Battery Management System (BMS) and its modular inline cube architecture. The custom electronics and advanced software in the BMS have improved availability and shown round trip efficiency above 80% with some longer duration applications surpassing 90%. Developed and maintained in the United States, the BMS ensures critical data privacy and cybersecurity protections, key to enhancing the resilience and security of the U.S. power grid.
The Company's inline cube, engineered to simplify field deployment and reduce system level costs, has also demonstrated measurable field efficiencies. In a recent Z3 project, Eos proved the ability to cold commission 75 cubes in just 7 days, resulting in approximately 96% lower installation costs versus prior system designs. Faster installation times and lower costs allow the Eos system to rapidly-scale and meet customer demand for accelerating grid integration.
Building on these operational and technological advancements, Eos has partnered with PA Consulting Group – energy market and policy advisor and industry leader in forecasting and analytics – to quantify the near and long-term value of its technology. Despite higher upfront costs, compared to incumbent technologies, PA's independent modeling for ERCOT-based customers showed 30-50% higher revenues over the life of a project for 4+ hour systems. This is a testament to the differentiated performance of the domestically manufactured Z3 technology, and the benefits Eos can provide to customers across North America.
As power systems adapt to the growing demands of electrification and increased renewable penetration, energy storage has become essential to ensuring grid reliability, flexibility, and resilience. Eos is well-positioned to meet this need with secure, scalable, American-made solutions offering customers not just technology, but long-term value and performance that support the evolving energy landscape.
Upon the closing of the offerings (including the option to purchase additional notes), the Company is no longer subject to quiet period restrictions until the regularly scheduled period at the end of the second quarter until earnings.
About EosEos Energy Enterprises, Inc. is accelerating the shift to American energy independence with positively ingenious solutions that transform how the world stores power. Our breakthrough Znyth™ aqueous zinc battery was designed to overcome the limitations of conventional lithium-ion technology. Safe, scalable, efficient, sustainable—and manufactured in the U.S—it is the core of our innovative systems that today provide utility, industrial, and commercial customers with a proven, reliable energy storage alternative for 3-to 12-hour applications. Eos was founded in 2008 and is headquartered in Edison, New Jersey. For more information about Eos (NASDAQ: EOSE), visit eose.com.
Contacts Investors: ir@eose.comMedia: media@eose.com
Forward Looking Statements
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding our expected revenue, for the fiscal years December 31, 2025, our path to profitability and strategic outlook, statements regarding orders backlog and opportunity pipeline, statements regarding our expectation that we can continue to increase product volume on our state-of-the-art manufacturing line, statements regarding our future expansion and its impact on our ability to scale up operations, statements regarding our expectation that we can continue to strengthen our overall supply chain, statements regarding our expectation that our new comprehensive insurance program will provide increased operational and economic certainty, statements that refer to the delayed draw term loan with Cerberus, milestones thereunder and the anticipated use of proceeds, statements that refer to outlook, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are based on our management's beliefs, as well as assumptions made by, and the information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected.
Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to generate cash, service indebtedness and incur additional indebtedness; our ability to achieve the operational milestones on the delayed draw term loan; our ability to raise financing in the future; risks associated with the DDTL with Cerberus, including risks of default, dilution of outstanding Common Stock, consequences for failure to meet milestones and contractual lockup of shares; our customers' ability to secure project financing; the amount of final tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act; the timing and availability of future funding under the Department of Energy Loan Facility; our ability to continue to develop efficient manufacturing processes to scale and to forecast related costs and efficiencies accurately; fluctuations in our revenue and operating results; competition from existing or new competitors; our ability to convert firm order backlog and pipeline to revenue; risks associated with security breaches in our information technology systems; risks related to legal proceedings or claims; risks associated with evolving energy policies in the United States and other countries and the potential costs of regulatory compliance; risks associated with changes to the U.S. trade environment; our ability to maintain the listing of our shares of common stock on NASDAQ; our ability to grow our business and manage growth profitably, maintain relationships with customers and suppliers and retain our management and key employees; risks related to the adverse changes in general economic conditions, including inflationary pressures and increased interest rates; risk from supply chain disruptions and other impacts of geopolitical conflict; changes in applicable laws or regulations; the possibility that Eos may be adversely affected by other economic, business, and/or competitive factors; other factors beyond our control; risks related to adverse changes in general economic conditions; and other risks and uncertainties.
The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in the Company's most recent filings with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that the Company makes with the Securities and Exchange Commission from time to time. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release.
Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
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