Eos Energy Enterprises (EOSE) Investor Update summary

Strategic investment and partnership

• Up to $315.5 million investment from Cerberus, including a $210.5 million delayed draw term loan and a $105 million revolver, supports expansion, profitability, and market acceleration in energy storage.

• Initial $75 million funding was received at closing, with Cerberus gaining penny warrants and non-voting convertible preferred stock, potentially up to 49% equity based on milestone achievement.

• The partnership enables a shift from frequent capital raising to focusing on execution, product launches, and manufacturing advancements.

• Cerberus brings significant resources and expertise, supporting expansion and operational improvements, especially as demand rises due to AI and data center growth.

• The partnership leverages both companies' focus on domestic manufacturing, innovation, and supply chain integrity, strengthening market position.

Capital structure and deal terms

• The $210.5 million term loan is disbursed in four installments, contingent on operational milestones, with a 5-year maturity and 15% interest rate; the $105 million revolver is at Cerberus' discretion.

• Existing $100 million Atlas loan was refinanced and extinguished for $27 million, freeing up restricted cash and improving financial flexibility.

• Cerberus may hold up to 33% of common stock, increasing to 49% if milestones are not met, with earn-back provisions for the company.

• No amortization is required for the first two years, with gradual payments thereafter; interest may rise to 20% if stockholder approval is not obtained.

• Stockholder approval is required for issuance of more than 19.99% of common stock under warrants and preferred stock convertibility, with proxy filings to the SEC.

Operational focus and market outlook

• The capital infusion enables focus on executing Project AMAZE, cost reduction milestones, and the path to profitability as outlined in the December strategic outlook.

• The team is focused on completing the Site Acceptance Test for the new manufacturing line and progressing the DOE loan process.

• Eos aims to scale operations, expand manufacturing capacity, and streamline its supply chain to meet growing demand, supported by a $13.3 billion pipeline and $602.7 million order backlog as of March 31, 2024.

• The long-duration energy storage market is expected to more than double by 2030, driven by data center and AI growth, decarbonization targets, and supportive policies.

• Eos' Znyth aqueous zinc battery technology targets 3 to 12-hour applications, offering a safe, scalable, and sustainable alternative to lithium-ion.