Shares of Bloom Energy Corp. BE dropped 5.9% toward a one-year low in premarket trading Thursday, after the electricity and hydrogen generator announced plans to privately offer $500 million in senior notes, which will be convertible to cash and common stock. The company plans to use a portion of the proceeds from the offering to redeem all of the $57.5 million outstanding principal amount of its 10.25% notes due 2027. The pricing of the 2028 notes has not yet been determined. As of March 31, the company had total debt of $409.2 million. The stock has sunk 36.8% over the past three months, while the Global X Hydrogen exchange-traded fund HYDR has dropped 29.2% and the S&P 500 SPX has gained 1.2%.
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