Enovix plans to raise $300 million through convertible notes offering

Enovix Corporation (NASDAQ: ENVX) announced plans to offer $300 million in convertible senior notes due 2030 through a private placement to qualified institutional buyers. The battery technology company also intends to grant initial purchasers an option to buy an additional $60 million in notes within 13 days of issuance.

The notes will be unsecured obligations that accrue interest payable semiannually. Holders may convert the notes into cash, Enovix common stock, or a combination of both under certain conditions, at the company's discretion. Interest rates and conversion terms will be determined at pricing.

Enovix expects to use part of the proceeds to pay for capped call transactions designed to offset potential dilution from note conversions. The company plans to use remaining proceeds for general corporate purposes, including potential acquisitions in the battery ecosystem.

The company stated it is in preliminary discussions with acquisition targets that could be EBITDA accretive within 12 months, though no commitments or agreements currently exist. Enovix emphasized these discussions are in early stages with no assurance of completion.

In connection with the offering, Enovix will enter into four separate capped call transactions with varying expiration periods of approximately six, twelve, eighteen, and thirty-six months after note issuance. These transactions are intended to reduce interim dilutive effects if notes are converted near each expiration date.

The offering remains subject to market conditions, with no guarantee of completion or final terms. The notes and any shares issuable upon conversion have not been registered under federal securities laws.

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