Atlas Energy extends losses as convertible offering swells to $390 mln

Atlas Energy Solutions

07/04/2026 14:51

** Shares of oilfield services firm Atlas Energy Solutions AESI.N down 2% early Tues at $10.94, on track to fall for seventh straight session, after upsized capital raise

** Austin, Texas-based frac sand supplier early Tues announced pricing private offering of $390 mln 0.5% 5-yr convertible bonds

** Initial conversion price of $14.51 represents 30% premium to stock's last sale of $11.16 on Mon

** AESI shares fell ~8% on Mon after co launched $300 mln offering to repay a lease agreement and borrowings under its credit facility

** Co also expects to use some proceeds for general purposes, including to purchase a portion of power generation equipment under its global framework agreement with Caterpillar CAT.N

** AESI also plans to use ~$43 mln to fund capped call transactions; initial cap price of $22.32 is double stock's last close

** With move on Tues, AESI shares up 16% YTD

** Avg rating of 11 analysts is "hold"; median PT $12.50, according to LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))