Eos Energy Enterprises entered into an amended and restated term sheet to form a joint venture (JV) with affiliates of Cerberus Capital Management (CCM Frontier) and Hudson Bay Capital Management (HBC). The JV, named Frontier Power USA Parent, LLC, will be capitalized by contributions from all parties, with Eos funding its portion through a planned rights offering and a registered direct offering.
Key Details
- JV Capital Contributions: CCM Frontier will contribute $100 million in cash and its frontier power platform. HBC will contribute $50 million in cash. Eos will contribute proceeds from planned equity raises.
- Eos Rights Offering: The company plans a rights offering to existing shareholders targeting a raise of $150 million. The subscription price will be $5.481 per unit, with each unit including one common share and a fraction of a warrant.
- Warrants Issued: Eos will issue 10-year warrants to CCM and HBC to purchase approximately 20.0 million and 10.0 million common shares, respectively, at an exercise price of $5.481 per share.
- Governance & Conditions: The JV's board will consist of seven managers, with four appointed by CCM and up to three by Eos. The transaction is subject to conditions, including the completion of the rights offering and final definitive agreements. Eos has received the necessary consents from the Department of Energy for the transaction.