Solaris Energy slides after unveiling $600 mln convertible debt deal

Solaris Energy Infrastructure

06/10/2025 22:14

** Shares of Solaris Energy Infrastructure SEI.N down 7.4% in extended trading to $43.28 as co looks to raise capital

    ** Houston-based oil and gas infrastructure firm announces
    public offering of $600 mln 6-yr convertible bonds (CBs)

** It intends to use net offering proceeds to repay outstanding principal amount of $320.9 mln under term loan, fund growth capital for additional power generation equipment, including new natural gas turbines, among other uses

** It also plans to use proceeds to fund cost of capped calls, derivative transactions employed to help mitigate potential dilution

** Alongside the CBs, co announces proposed offering of borrowed Class A common stock to facilitate hedging transactions

** Morgan Stanley, Goldman Sachs and Santander are bookrunning managers for the CBs offering

** SEI has ~67.6 mln shares outstanding for about $3.2 bln market cap

** Stock on Mon finished up 4.7% at record high close of $46.75, up 62% YTD

    ** All 11
    analysts covering SEI are bullish and median PT is $45, 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))