Atlas Energy announces pricing of upsized $390M placement of senior notes

Atlas Energy (AESI) Solutions has priced its previously announced private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended of $390M aggregate principal amount of 0.50% Convertible Senior Notes due 2031. The size of the offering was increased from the previously announced $300M to $390M. The issuance and sale of the notes are scheduled to settle on April 9, subject to customary closing conditions. The Company also granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 calendar days from, and including, the date the notes are first issued, up to an additional $60M aggregate principal amount of notes. The Company estimates that the net proceeds from the offering will be approximately $377M after deducting the initial purchasers’ discounts and commissions and the Company’s estimated offering expenses. The Company intends to use approximately $43M of the net proceeds to fund the cost of entering into the capped call transactions. In addition, the Company intends to use approximately $66M of the net proceeds from the offering to repay outstanding advances under its Master Lease Agreement and Interim Funding Agreement, each with Stonebriar Commercial Finance, including a $5M termination fee in connection therewith and approximately $75M of the net proceeds from the offering to repay outstanding borrowings under its 2023 ABL Credit Facility. The Company expects to use the remainder of the net proceeds for general corporate purposes, including to purchase a portion of the power generation equipment under the Global Framework Agreement with Caterpillar Inc., along with balance of plant and supporting equipment.