Intuitive Machines convertible offering ‘opportunistic,’ says Roth Capital

After Intuitive Machines (LUNR) issued an upsized $300M senior convertible note last week, Roth Capital said the firm was “encouraged” that the debt offering was oversubscribed, which the firm views as reflective of continued strong interest in space and defense-themed investments. Leveraging a favorable convert market environment, Intuitive secured what the firm believes to be “a very reasonable coupon rate of 2.5%” in an offering that the firm calls an “opportunistic move” to improve the company’s financial flexibility. Roth maintains a Buy rating and $16 price target on Intuitive Machines shares.