PureCycle Technologies Raises $395M to Repurchase 7.25% Notes and Fund Operations
MS•PureCycle Technologies has launched a $395 million combined offering of $250 million convertible senior notes maturing in 2032 and $145 million common stock, with underwriters given options for $37.5 million notes and $18.75 million stock. Net proceeds will repurchase 7.25% green convertible notes due 2030 and support operations.
1. Offering Structure
PureCycle Technologies launched an underwritten public offering comprising $250 million of convertible senior notes due 2032 and $145 million of new common stock, with underwriters granted a 30-day option to purchase an additional $37.5 million in notes and $18.75 million in shares.
2. Proceeds Allocation
Net proceeds are earmarked to repurchase outstanding 7.25% green convertible notes due 2030 through private transactions, with remaining funds designated for general corporate purposes and working capital.
3. Investor Reaction and Outlook
Shares declined 14% in after-hours trading on dilution concerns. Analysts are split evenly between hold and buy ratings, with an average 12-month price target of $11.83, implying a 19.7% upside.
