Shares of Aeva Technologies Inc. (NASDAQ: AEVA) surged 7.76% in after-hours trading on Wednesday, following the company's announcement of a $100 million convertible senior notes offering. The significant move comes as investors react positively to the influx of capital, which is expected to strengthen Aeva's financial position and support its growth initiatives.
According to the company's statement, funds managed by Apollo will invest $100 million in 4.375% Convertible Senior Notes due 2032. The notes will have an initial conversion price of $15.8643, representing a 15% premium above Aeva's closing stock price on November 4, 2025. This conversion premium suggests investor confidence in Aeva's long-term potential.
The notes, set to mature on November 15, 2032, unless earlier repurchased, redeemed, or converted, will bear interest at a rate of 4.375% per year. Aeva has the flexibility to pay this interest in cash or its common stock. Upon conversion, the company may elect to settle in cash, shares of common stock, or a combination thereof, providing financial flexibility for the future.