US-based electric vehicle charging service provider ChargePoint Holdings Inc. has raised $232 million as part of its capital strategy to consolidate its balance sheet, the company announced October 11.
The funding comprises $175 million of new equity committed by institutional investors and $57 million of new equity raised in the third quarter of fiscal year 2024 under the at-the-market (ATM) facility.
“ChargePoint has secured a commitment from institutional investors, led by the lead investor of ChargePoint's $300 million in convertible notes issued in April 2022, to purchase $175 million of common stock pursuant to the company’s ‘at-the-market’ or ATM offering facility. Separately, ChargePoint raised net proceeds of $57 million in additional funds under the ATM facility during the third fiscal quarter of 2024,” the company said in a statement on October 11.
The company further added that it has entered into a binding term sheet with the lead investor in the convertible notes, agreeing to modify, either by amendment or exchange for new notes, the said convertible notes to extend the maturity from April 1, 2027, to April 1, 2028. This is done to increase the cash coupon from 3.5% to 7% per year, to increase the payment-in-kind coupon from 5% to 8.5% per year and to adjust the conversion price from $24.03 per share to $12.00 per share, it said.
Commenting on the new financing facility, ChargePoint CFO Rex Jackson said, “We are pleased to secure $232 million in funding this quarter, which supports our stated goal of adjusted EBITDA profitability in the fourth fiscal quarter of next year. These raises and our recently announced $150 million revolving credit facility are consistent with our announced capital strategy to bolster our balance sheet. We have no further plans to access the ATM.”
