Cerberus to Invest up to $315.5 Million in Eos Energy
DENVER, Colo., Jun 24, 2024 (247marketnews.com)- Eos Energy Enterprises, Inc. (NASDAQ:EOSE) reported that an affiliate of Cerberus Capital Management LP agreed to make a strategic investment of up to $315.5 million, to support Eos Energy’s growth plans and enable Eos to restructure existing debt.
“We are thrilled to partner with Cerberus at a pivotal moment in Eos’ history. This investment provides the critical funding needed to execute our profitability roadmap, while also providing our customers with the confidence that Eos can produce at scale,” stated Joe Mastrangelo, CEO of Eos. “Cerberus’ investment, combined with their deep operational and technical knowledge, enables us to expand our manufacturing capacity, streamline our supply chain, and strengthen our market position.
“Today’s announcement is a clear testament to the strength of Eos’ vision and serves as an important validation for the need to scale an American-made battery storage solution. It also demonstrates the commitment of a recognized global strategic partner in Eos’ ability to provide sustainable value to each of our stakeholders well into the future.”
Nick Robinson, Cerberus’ Supply Chain and Strategic Opportunities platform Managing Director, commented, “Cerberus is ecstatic to be investing in what we believe to be the United States’ first scalable non-lithium BESS platform. Eos has evolved dramatically in recent years in both cell technology and manufacturing efficiency, making the Company now ready to accelerate its first mover-advantage in long-duration energy storage.
“With Joe’s leadership, plus Cerberus’ focus on U.S. innovation in critical technologies and next-generation manufacturing capabilities, we could not be more excited and prouder to help Eos build a big and incredibly important company for the U.S. and our allies for many years to come.”
The investment structure is as a $210.5 million delayed draw term loan, partially based on operational milestones, and a $105 million revolver that Eos may draw upon, if required, at Cerberus’ discretion.
Nathan Kroeker, CFO of Eos, added, “The strategic investment announced today, combined with Eos’ highly efficient manufacturing capacity model, supports our capital needs as we execute on Project AMAZE. We look forward to working with Cerberus and their strong network to continue driving down product costs, improving performance of our storage systems, and developing financing alternatives for our customers. Our broader strategy remains unchanged, and we remain committed to the cost-out milestones and our path to profitability previously outlined at our December 2023 Strategy Call.
“Today’s announcement is a clear testament to the strength of Eos’ vision and serves as an important validation for the need to scale an American-made battery storage solution. It also demonstrates the commitment of a recognized global strategic partner in Eos’ ability to provide sustainable value to each of our stakeholders well into the future.”
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