The company is authorized to request an additional $15 million, subject to conditions
EDISON, New Jersey, Aug. 01, 2022 (GLOBE NEWSWIRE) — Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos”), a leading provider of safe zinc-based energy storage systems, scalable, efficient and sustainable, announced today that it has entered into an $85 million senior secured term loan facility with Atlas Credit Partners (“ACP”).
“We are delighted to partner with ACP on this transaction which increases our financial flexibility,” said Joe Mastrangelo, CEO of Eos. “This capital allows us to accelerate the expansion of our manufacturing capacity to accelerate the shift to clean energy and meet our $460 million backlog.”
The growth in the Company’s backlog, which now stands at 1.9 GWh, is partly due to customer recognition of the simplicity and flexibility of Eos’ energy storage systems manufactured in the USA.
“It is an honor and a privilege to partner with Eos,” said Drew Mallozzi, Managing Partner of ACP. “The company has proven technology with a strong management team and is building a capital-efficient and scalable manufacturing model that ACP believes is poised to capture one of the greatest secular growth opportunities that we have identified in the energy sector.”
After closing costs and other expenses, the financing will provide capital for the continued expansion of the company’s manufacturing capacity, the development of next-generation energy storage systems and services, and for general the company. The financing consists of a four-year amortization term loan that bears interest at a floating rate of SOFR plus 8.5%. The credit agreement also allows the company to make a one-time request for an additional commitment of up to $15 million, subject to the consent of the lender.
Eos Energy Enterprises, Inc. is accelerating the shift to clean energy with positively ingenious solutions that are transforming the way the world stores energy. Our revolutionary Znyth™ aqueous zinc battery was designed to overcome the limitations of conventional lithium-ion technology. Safe, scalable, efficient, sustainable – and made in the USA – it’s the heart of our innovative systems that provide utility, industrial and commercial customers today with a proven and reliable energy storage alternative. Eos was founded in 2008 and is based in Edison, New Jersey. For more information about Eos (NASDAQ: EOSE), visit eose.com.
About Atlas Credit Partners
Atlas Credit Partners is a Houston, Texas-based investment firm specializing in credit-focused capital solutions in partnership with management teams.
This press release contains certain statements that may constitute “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 intended use of proceeds from the senior secured term loan facility, statements referring to projections, forecasts or other characterizations of future events or circumstances, including any assumptions underlying underlying. The words “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “could”, “plan”, ” possible”, “potential”, “predict”, “project”, “should”, “would” and similar expressions may identify forward-looking statements, but the absence of such words does not mean that a statement is not prospective. Factors that could cause actual results to differ materially from current expectations include, but are not limited to: changes that adversely affect the business in which we engage; our ability to predict trends accurately; our ability to generate cash, repay debt and incur additional debt; our ability to develop efficient manufacturing processes at scale and accurately predict associated costs and efficiencies; fluctuations in our revenues and results of operations; competition from existing or new competitors; the non-conversion of the firm order backlog into sales; risks associated with security breaches in our computer systems; risks relating to legal proceedings or claims; risks associated with changes in federal, state or local laws; risks associated with potential regulatory compliance costs; risks associated with changes in US trade policies; risks resulting from the impact of global pandemics, including the novel coronavirus, Covid-19; and risks related to adverse changes in general economic conditions. The forward-looking statements contained in this press release are also subject to additional risks, uncertainties and factors, including those described in greater detail in Eos’ latest filings with the Securities and Exchange Commission, including Eos’ latest annual report. ‘Eos on Form 10-K. and subsequent reports on Forms 10-Q and 8-K. Further information about potential risks that could affect actual results will be included in subsequent periodic and current reports and other filings by Eos with the Securities and Exchange Commission from time to time. In addition, Eos operates in a highly competitive and rapidly changing environment, and new risks and uncertainties may emerge that could impact 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 place undue reliance on forward-looking statements and, except as required by law, Eos undertakes no obligation and does not intend to update or revise such forward-looking statements, whether whether as a result of new information, future events, or otherwise.