Stem Prices $200 Mln 4.25% Green Convertible Senior Notes Due 2030

(RTTNews) - Stem, Inc. (STEM) announced Thursday the pricing of $200 million aggregate principal amount of 4.25% Green Convertible Senior Notes due 2030 in a private offering, which was upsized from the previously announced $175 million offering, to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

In connection with the Offering, Stem has granted the initial purchasers of the Notes an option to purchase, for settlement within a 13-day period from, and including, the date when the Notes are first issued, up to an additional $40 million aggregate principal amount of the Notes on the same terms and conditions.

The sale of the Notes to the initial purchasers is expected to settle on April 3, 2023, subject to customary closing conditions.

When issued, the Notes will be senior, unsecured obligations of Stem. The Notes will accrue interest payable semi-annually in arrears and will mature on April 1, 2030, unless earlier repurchased, redeemed or converted.

Stem intends to use the net proceeds from the Offering to purchase and surrender for cancellation approximately $163.0 million aggregate principal amount of Stem's 0.50% Green Convertible Senior Notes due 2028 in privately negotiated transactions concurrently with the pricing of the Offering.

The net proceeds will also be used to fund the cost of entering into capped call transactions and the remainder of the net proceeds of the Offering for general corporate purposes.