Advanced Energy to redeem $136.7 million convertible notes in 2026

Advanced Energy Industries Inc. (NASDAQ: AEIS) announced it issued a notice to redeem all $136,709,000 of its outstanding 2.50% Convertible Senior Notes due 2028 on September 23, 2026.

The Denver-based power conversion solutions company will redeem the notes at 100% of principal amount plus accrued unpaid interest to the redemption date. The redemption follows Section 16.01 of the indenture agreement with U.S. Bank Trust Company, National Association as trustee.

Noteholders may convert their securities to common stock before 5:00 p.m. New York time on September 22, 2026. Each $1,000 principal amount converts to approximately 7.2747 shares at a conversion price of about $137.46. Notes converted in connection with the redemption will receive an additional 0.0743 shares per $1,000 principal amount.

The company will settle conversions by paying cash for the principal portion and delivering common stock for the remainder, excluding fractional shares paid in cash. The observation period for conversions will run from June 26, 2026 through September 21, 2026.

Upon conversion, holders will not receive separate cash payments for accrued interest, as the settlement satisfies both principal and interest obligations. After the redemption date, interest will cease accruing and holders may only receive the redemption price upon surrendering notes to the paying agent.

Advanced Energy designs precision power conversion, measurement and control solutions for semiconductor equipment, industrial production, medical and life sciences, data center computing, networking and telecommunications industries.

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