Enovix Announces Proposed $150 Million Offering of Convertible Senior Notes Due 2028

About this update from Enovix Corporation

[{"type":"text","content":"FREMONT, Calif., April 17, 2023 (GLOBE NEWSWIRE) -- Enovix Corporation (“Enovix”) (NASDAQ: ENVX), an advanced silicon battery company, today announced its intent to offer $150 million aggregate principal amount of Convertible Senior Notes due 2028 (the “Notes”) in a private placement (the “Offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Enovix also intends to grant the initial purchasers of the Notes an option to purchase, within a 13-day period beginning on, and including, the date on which the Notes are first issued, up to an additional $22.5 million aggregate principal amount of Notes. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering. Entities affiliated with Thurman J. Rodgers, Enovix’s Chairman (the “Affiliated Investors”), have indicated an interest in purchasing up to $5.0 million aggregate principal amount of additional Notes in a separate concurrent private placement under Section 4(a)(2) of the Securities Act (the Notes purchased by the Affiliated Investors, the “Affiliate Notes”). The Affiliate Notes are expected to be sold at the same price, and constitute part of the same series, as the Notes. The Affiliated Investors are under no obligation to purchase any of the Affiliate Notes offered and their interest in purchasing such Affiliate Notes is not a commitment to do so. The Notes will be general unsecured obligations of Enovix and will accrue interest payable semiannually in arrears. The Notes will be convertible at the option of holders into cash, shares of Enovix’s common stock or a combination of cash and shares of Enovix’s common stock, at Enovix’s election. The interest rate, initial conversion rate and other terms of the Notes will be determined at the time of pricing of the Offering. Enovix expects to use a portion of the net proceeds from the Offering and the sale of the Affiliate Notes to pay the cost of the capped call transactions described below. Enovix expects to use the remaining net proceeds from the Offering and the sale of Affiliate Notes to build out a second battery cell manufacturing facility and fund the acquisition of production lines of...

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