Stem Inc. has taken significant steps to bolster its financial position by restructuring its debt through a convertible notes exchange and issuing new notes. The company successfully exchanged $350 million in existing convertible senior notes, due in 2028 and 2030, for $155 million in new first lien senior secured notes, extending its debt maturity profile to 2030. This move reduces Stem's outstanding debt by approximately $195 million and raises $10 million in cash, positioning the company to focus on its software-driven strategy. The restructuring also offers Stem the flexibility to manage liquidity by allowing interest payments to be made in-kind and strengthens its balance sheet, enhancing its ability to execute its strategic plan.
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