T1 Energy slips after $120 mln convertible bond sale
TE•Shares fall after convertible note offering
Shares of solar solutions provider T1 Energy TE.N were down 3.5% to $3.59 in premarket trading on Thursday after news of a capital raise.
TE announced a private placement of $120 million of 4.75% convertible bonds due Aug. 1, 2031. The initial conversion price of $4.46 represents a 20% premium above the stock's last close of $3.72.
The company, which has a market cap of roughly $1 billion, said it intends to use net offering proceeds for construction and development of infrastructure related to its Austin, Texas solar cell fab facility, and for general corporate purposes.
Through Wednesday, the stock had plunged 60% in July, leaving it down 44% year to date.
Six of seven analysts rate the stock "strong buy" or "buy" and one rates it "hold"; the median price target is $9, according to LSEG data.
