STEM

By Chris Wack

Stem Inc. shares were down 17% at $5.22 after the company said it intends to offer $175 million in green convertible senior notes due 2030 in a private offering.

The stock hit its 52-week low of $4.67 earlier in the session, and is down 55% in the past 12 months.

In connection with the offering, Stem expects to grant the initial purchasers of the notes an option to buy--for settlement within a 13-day period from, and including, the date when the notes are first issued--up to an additional $35 million of the notes under the same terms and conditions.

When issued, the notes will be senior, unsecured obligations of Stem. They will accrue interest payable semi-annually in arrears and will mature on April 1, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date.

Stem intends to use the net proceeds of the offering to purchase and surrender for cancellation a portion of Stem's 0.50% Green Convertible Senior Notes due 2028 in privately negotiated transactions concurrently with the pricing of the offering and for general corporate purposes.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

March 29, 2023 10:53 ET (14:53 GMT)

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