Benzinga | Dec 2, 2020 05:25AM EST

FuelCell Energy Priced 34.5M Share Offering of Common Stock @$6.50/Share

FuelCell Energy, Inc. (NASDAQ:FCEL) announced the pricing of its underwritten public offering of 34,518,539 shares of its common stock (the "Offering"), at a public offering price of $6.50 per share. The Offering consists of 19,822,219 shares being sold by the Company and 14,696,320 shares being sold by certain selling stockholders, resulting in aggregate gross proceeds of $128.8 million to the Company and $95.5 million to the selling stockholders. The Company will not receive any proceeds from the sale of its common stock by the selling stockholders. The Offering is expected to close on or about December 3, 2020, subject to customary closing conditions. FuelCell Energy has also granted the underwriters a 30-day option to purchase up to 5,177,781 additional shares of its common stock.

FuelCell Energy intends to use the net proceeds from the Offering to repay all outstanding amounts under its Credit Agreement with Orion Energy Partners Investment Agent, LLC, as Administrative Agent and Collateral Agent, and its affiliated lenders. The Company may also use a portion of the net proceeds from the Offering to pay the principal redemption price of and accrued dividends on preferred stock issued by one of the Company's subsidiaries and to repay other outstanding debt. Any remaining proceeds will be used to accelerate the development and commercialization of the Company's solid oxide platform and for project development, project financing, working capital support, and general corporate purposes.

J.P. Morgan Securities LLC is acting as sole book-running manager.