Battery storage manufacturer EnerSys closes $300m note issue

January 12, 2024

US energy storage system manufacturer EnerSys has closed a $300 million note issue.

The 6.625% senior notes – a documents that obligates an issuer to repay the creditor the principal amount of a loan plus any interest payments at a predetermined date –  due 2032 were issued at an issue price of 100% of the principal amount. The notes are unsecured, unsubordinated obligations of the company and are guaranteed by each of the company’s subsidiaries that guarantee the company’s senior secured credit facilities and 4.375% senior notes due 2027.

The Company intends to use the net proceeds from the offering to repay and retire a portion of its outstanding term loans. The company intends to use the remaining net proceeds for general corporate purposes, including to repay a portion of the outstanding borrowings under its revolving credit facility (without a reduction in commitment). “The exact allocation of such proceeds and the timing thereof is at the discretion of the company’s management,” and Enersys statement said.