ChargePoint, a provider of an open electric vehicle charging network, announced that Antara Capital has agreed to make a $300 million investment in the company by purchasing convertible senior notes to accelerate the company’s growth.
The transaction is expected to close on April 12, 2022.
Under the terms of investment, Antara Capital will purchase a total aggregate principal amount of $300 million in 3.5/5.00% convertible senior notes due 2027.
The Notes will be convertible at an initial conversion price to be determined before closing. The initial conversion price will represent a 30.0% premium to ChargePoint’s volume-weighted average price over a pre-determined period between this announcement and closing. Upon any conversion, ChargePoint will have the right to elect settlement in cash, shares, or any combination thereof in its sole discretion.
Evercore acted as a financial advisor to ChargePoint.
ChargePoint is permitted to pay interest on the Notes in cash or through the issuance of additional Notes (PIK Interest) at its election. Interest payments made in cash will be based on an interest rate of 3.50% per year, and PIK Interest will be based on an interest rate of 5.00% per year. The Notes will mature on April 1, 2027, unless redeemed, repurchased, or converted in accordance with their terms prior to such date. The Notes will be guaranteed by ChargePoint’s operating company and wholly-owned subsidiary, ChargePoint.
In 2020, ChargePoint closed $127 million in incremental equity financing.
According to Mercom’s 2021 annual funding and M&A report for storage, grid, and efficiency, total corporate funding in the battery storage sector was up 159%, with $17 billion in 101 deals in 2021. Funding raised in 2021 was the highest since 2014, and the deal count nearly doubled compared to 2020.