Eos Energy Secures Cerberus Delayed Draw Term Loan Full Funding, Continuing U.S. Manufacturing Capacity to Strengthen America’s Energy Independence
Eos Energy Enterprises (NASDAQ: EOSE) has achieved its third set of performance milestones, securing the final $40.5 million of a $210.5 million Delayed Draw Term Loan (DDTL) from Cerberus Capital Management. The company surpassed its January raw materials cost-out target by 6% and achieved manufacturing cycle times below 10 seconds, demonstrating operational efficiency.
The funding, combined with a recent Department of Energy loan guarantee disbursement in December, provides Eos with capital to implement Project AMAZE and scale production of its zinc-based long duration energy storage systems. The company's achievement includes meeting key operational milestones related to manufacturing, raw materials cost reduction, Z3 technology performance, and orders backlog cash conversion.
Eos Energy Enterprises (NASDAQ: EOSE) ha raggiunto il suo terzo insieme di traguardi di prestazione, assicurandosi i 40,5 milioni di dollari finali di un prestito a termine con prelievo differito (DDTL) di 210,5 milioni di dollari da Cerberus Capital Management. L'azienda ha superato del 6% l'obiettivo di riduzione dei costi delle materie prime fissato per gennaio e ha raggiunto tempi di ciclo produttivo inferiori a 10 secondi, dimostrando efficienza operativa.
I finanziamenti, insieme a un recente stanziamento di garanzia di prestito del Dipartimento dell'Energia avvenuto a dicembre, forniscono a Eos il capitale per attuare il Progetto AMAZE e aumentare la produzione dei suoi sistemi di stoccaggio energetico a lungo termine basati sullo zinco. Il successo dell'azienda include il raggiungimento di traguardi operativi chiave relativi alla produzione, alla riduzione dei costi delle materie prime, alle prestazioni della tecnologia Z3 e alla conversione in contante dell'ordine in arretrato.
Eos Energy Enterprises (NASDAQ: EOSE) ha logrado su tercer conjunto de hitos de rendimiento, asegurando los 40,5 millones de dólares finales de un préstamo a plazo con retiro diferido (DDTL) de 210,5 millones de dólares por parte de Cerberus Capital Management. La empresa superó su objetivo de reducción de costos de materias primas de enero en un 6% y alcanzó tiempos de ciclo de fabricación inferiores a 10 segundos, demostrando eficiencia operativa.
La financiación, combinada con un reciente desembolso de garantía de préstamo del Departamento de Energía en diciembre, proporciona a Eos capital para implementar el Proyecto AMAZE y aumentar la producción de sus sistemas de almacenamiento de energía de larga duración a base de zinc. Los logros de la empresa incluyen el cumplimiento de hitos operativos clave relacionados con la fabricación, la reducción de costos de materias primas, el rendimiento de la tecnología Z3 y la conversión en efectivo del backlog de pedidos.
Eos Energy Enterprises (NASDAQ: EOSE)는 세 번째 성과 이정표 세트를 달성하며 Cerberus Capital Management로부터 2억 1천만 달러 중 마지막 4천5백만 달러의 지연 인출 만기 대출(DDTL)을 확보했습니다. 이 회사는 1월 원자재 비용 절감 목표를 6% 초과 달성했으며, 10초 이하의 제조 사이클 타임을 달성하여 운영 효율성을 입증했습니다.
이 자금은 12월에 발생한 미국 에너지부 대출 보증 지급과 결합되어 Eos가 AMAZE 프로젝트를 구현하고 아연 기반의 장기 에너지 저장 시스템 생산을 확대할 수 있는 자본을 제공합니다. 회사의 성과에는 제조, 원자재 비용 절감, Z3 기술 성능 및 주문 적체의 현금 전환과 관련된 주요 운영 이정표를 달성하는 것이 포함됩니다.
Eos Energy Enterprises (NASDAQ: EOSE) a atteint son troisième ensemble de jalons de performance, sécurisant les 40,5 millions de dollars finaux d'un prêt à terme avec tirage différé (DDTL) de 210,5 millions de dollars de Cerberus Capital Management. L'entreprise a dépassé son objectif de réduction des coûts des matières premières de 6 % en janvier et a atteint des temps de cycle de fabrication inférieurs à 10 secondes, démontrant ainsi une efficacité opérationnelle.
Ce financement, combiné à un récent décaissement d'une garantie de prêt du département de l'Énergie en décembre, fournit à Eos les fonds nécessaires pour mettre en œuvre le Projet AMAZE et augmenter la production de ses systèmes de stockage d'énergie à long terme à base de zinc. Les réalisations de l'entreprise comprennent la satisfaction de jalons opérationnels clés liés à la fabrication, la réduction des coûts des matières premières, la performance de la technologie Z3 et la conversion en espèces du carnet de commandes.
Eos Energy Enterprises (NASDAQ: EOSE) hat sein drittes Set von Leistungsmeilensteinen erreicht und sich die finalen 40,5 Millionen Dollar eines 210,5 Millionen Dollar hohen verzögerten Darlehens (DDTL) von Cerberus Capital Management gesichert. Das Unternehmen hat sein Ziel zur Kostensenkung bei Rohstoffen im Januar um 6% übertroffen und Herstellungszykluszeiten von unter 10 Sekunden erreicht, was betriebliche Effizienz demonstriert.
Die Finanzierung, kombiniert mit einer kürzlichen Auszahlung von Darlehensgarantien des Energieministeriums im Dezember, bietet Eos Kapital zur Umsetzung des Projekts AMAZE und zur Skalierung der Produktion seiner zinkbasierten Langzeit-Energiespeichersysteme. Die Erfolge des Unternehmens beinhalten die Erreichung wichtiger betrieblicher Meilensteine in Bezug auf die Fertigung, die Kostensenkung bei Rohstoffen, die Leistungsfähigkeit der Z3-Technologie und die Umwandlung des Bestellrückstands in Bargeld.
- Secured final $40.5M of $210.5M term loan from Cerberus
- Surpassed raw materials cost-out target by 6%
- Achieved manufacturing cycle times below 10 seconds
- Received DOE loan guarantee first disbursement in December
- None.
Insights
The successful securing of the final
Three key financial implications stand out:
- Working Capital Optimization: The company's statement about customer projects funding working capital suggests improving cash conversion cycles, which is important for sustainable growth without constant external funding needs.
- Cost Structure Improvements: The better-than-expected materials cost reduction indicates accelerating operational leverage, which should translate to improving gross margins as production scales.
- Multi-source Funding: The combination of Cerberus funding and DOE loan disbursements provides diversified capital sources, reducing financing risk and potentially lowering overall cost of capital.
The emphasis on American-made manufacturing aligns with current policy tailwinds, potentially positioning Eos for preferential treatment in government contracts and incentives. The comparison to First Solar by Cerberus is particularly noteworthy, as it suggests a similar potential trajectory of establishing domestic manufacturing leadership in a strategic energy sector.
The operational metrics revealed in this announcement demonstrate remarkable manufacturing optimization:
- Cycle Time Achievement: Sub-10 second manufacturing cycles represent world-class production efficiency for energy storage systems, potentially enabling significant throughput increases without proportional capital investment.
- Supply Chain Excellence: Surpassing materials cost-out targets by
6% indicates successful supplier negotiations and process improvements, important for long-term competitiveness against Asian manufacturers. - Scalability Potential: The combination of optimized cycle times and improved cost structure suggests the manufacturing platform is ready for significant volume increases, with positive implications for unit economics.
The operational progress aligns with Project AMAZE's objectives, indicating successful implementation of advanced manufacturing techniques. The achievement of these metrics suggests Eos has overcome initial scaling challenges and established a repeatable, efficient production process - a critical milestone for energy storage manufacturers transitioning from development to commercial scale.
Successfully achieves all operational milestones that guarantees final
TURTLE CREEK, Pa., Jan. 27, 2025 (GLOBE NEWSWIRE) -- Eos Energy Enterprises, Inc. (NASDAQ: EOSE) ("Eos" or the “Company”), America’s leading innovator in designing, manufacturing, and providing zinc-based long duration energy storage systems sourced and manufactured in the United States, today announced the successful achievement of the third set of performance milestones previously agreed upon between Eos and an affiliate of Cerberus Capital Management LP (“Cerberus”) as part of Cerberus’s strategic investment in the Company. Successfully meeting these performance milestones allowed the Company to access the final
“The Eos team is making measurable progress, consistently meeting critical operational targets and positioning the Company for profitable growth,” said Nathan Kroeker, Eos Chief Financial Officer. “With the term loan fully funded, combined with Department of Energy (DOE) loan guarantee first disbursement in December, Eos has a strong foundation and sufficient capital to continue implementing Project AMAZE. We’re executing our strategy to scale production into strong customer demand for long duration energy storage. Cash from customer projects now play an important role in funding working capital and our American-made system can play a critical role in America achieving energy independence.”
The
“Cerberus is ecstatic about the incredible progress made since our initial investment last year. Joe and team continue to fire on all cylinders, and Cerberus will continue to be all-in, helping Eos execute on their rapidly growing global pipeline and backlog,” said Nick Robinson, Cerberus Senior Managing Director and Eos Board Member. “With all the pieces now firmly in place to scale, 2025 and beyond is all about revenue growth, profitability and acceleration of global manufacturing capacity to meet exponential global demand. This demand is driven by a critical need for a long duration, non-flammable alternative to lithium at a time when the national security imperative could not be more important. With President Trump’s recent Executive Order, emphasizing American-made, and American-sourced, manufacturing to supporting America’s energy independence, Cerberus could not be more excited about partnering with Eos to build a large global platform. Cerberus views Eos as the “First Solar” of the battery space, further highlighting America’s ability to lead, innovate, and reclaim our energy independence.”
About Eos Energy Enterprises
Eos Energy Enterprises, Inc. is accelerating the shift to American energy independence with positively ingenious solutions that transform how the world stores power. Our breakthrough Znyth™ aqueous zinc battery was designed to overcome the limitations of conventional lithium-ion technology. It is safe, scalable, efficient, sustainable, manufactured in the U.S., and the core of our innovative systems that today provides utility, industrial, and commercial customers with a proven, reliable energy storage alternative for 3 to 12-hour applications. Eos was founded in 2008 and is headquartered in Edison, New Jersey. For more information about Eos (NASDAQ: EOSE), visit eose.com.
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Forward Looking Statements
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding our path to profitability and strategic outlook, statements regarding our capital needs to support project AMAZE, statements regarding the anticipated use of proceeds from the delayed draw term loan with Cerberus, and statements that refer to outlook, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are based on our management’s beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected.
Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to generate cash, service indebtedness and incur additional indebtedness; our ability to achieve the operational milestones on the delayed draw term loan; our ability to raise financing in the future, including the discretionary revolving facility from Cerberus; risks associated with the credit agreement with Cerberus, including risks of default, dilution of outstanding Common Stock, consequences for failure to meet milestones and contractual lockup of shares; our customers’ ability to secure project financing; the amount of final tax credits available to our customers or to Eos pursuant to the Inflation Reduction Act; uncertainties around our ability to meet the applicable conditions precedent to funding under the DOE loan; our ability to continue to develop efficient manufacturing processes to scale and to forecast related costs and efficiencies accurately; fluctuations in our revenue and operating results; competition from existing or new competitors; our ability to convert firm order backlog and pipeline to revenue; risks associated with security breaches in our information technology systems; risks related to legal proceedings or claims; risks associated with evolving energy policies in the United States and other countries and the potential costs of regulatory compliance; risks associated with changes to the U.S. trade environment; risks resulting from the impact of global pandemics, including the novel coronavirus, Covid-19; our ability to maintain the listing of our shares of common stock on NASDAQ; our ability to grow our business and manage growth profitably, maintain relationships with customers and suppliers and retain our management and key employees; risks related to the adverse changes in general economic conditions, including inflationary pressures and increased interest rates; risk from supply chain disruptions and other impacts of geopolitical conflict; changes in applicable laws or regulations; the possibility that Eos may be adversely affected by other economic, business, and/or competitive factors; other factors beyond our control; risks related to adverse changes in general economic conditions; and other risks and uncertainties.
The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in the Company’s most recent filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that the Company makes with the Securities and Exchange Commission from time to time. Moreover, the Company operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release.
Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
FAQ
What is the total value of the Delayed Draw Term Loan (DDTL) secured by EOSE from Cerberus?
How did EOSE perform against its January 2025 raw materials cost-out target?
What manufacturing efficiency milestone did EOSE achieve in January 2025?
What are the key operational milestones EOSE met to secure the Cerberus funding?
How will EOSE use the secured funding from Cerberus?
