ENVX - Enovix prices $150M convertible notes offering

2023-04-18 07:46:54 ET

Silicon battery company Enovix ( NASDAQ: ENVX ) has priced its private offering of Convertible Senior Notes Due 2028.

The offering consists of $150M aggregate principal amount of the notes, which will accrue interest at a rate of 3.00% per year, payable semiannually in arrears. The notes will be general unsecured obligations of Enovix and mature on May 1, 2028, unless earlier converted, redeemed or repurchased.

Initial purchasers have been granted an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $22.5M of the notes.

An entity affiliated with Enovix chairman Thurman Rodgers has agreed to purchase $10M of the notes in the concurrent private placement.

The offering and sale of affiliate notes are expected to close on April 20, 2023, subject to customary closing conditions.

Net proceeds from the notes offering are estimated to be around $133.9M or $155.7M if the initial purchasers exercise their option in full. Net proceeds from the sale of the affiliate notes are expected to be ~$9.7M.

A portion of the proceeds will be used for capped call transactions, while the remaining will be used to establish a second battery cell manufacturing facility and fund the acquisition of production lines of second generation manufacturing equipment.

Raj Talluri, president and CEO of Enovix, stated: "We believe the proceeds from these notes, together with the previously announced $70M non-dilutive financing we are seeking to fund our planned next-generation manufacturing line in Malaysia, will enable us to build four production lines, all at ~7% dilution to our stockholders. With these lines, we expect to be able to manufacture between 38M to 75M batteries a year."

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