Eos Energy gets $125M from Hudson Bay for Frontier Power USA

Eos Energy Enterprises (NASDAQ: EOSE) announced a $125 million commitment from Hudson Bay Capital Management to support its Frontier Power USA (FPUSA) platform, bringing the platform's expected equity base to approximately $375 million.

Hudson Bay's commitment includes a $75 million equity investment in Eos and a separate $50 million direct investment into FPUSA, subject to certain conditions. The $75 million investment into Eos is structured on the same terms as a planned rights offering.

The new commitment is additive to a previously announced $100 million from Cerberus Capital Management and Eos' own planned contribution of up to $150 million, which the company intends to fund through the upcoming rights offering.

Under FPUSA's planned financing model, the $375 million equity base is expected to support more than $1.5 billion in project deployment capital at approximately 75% loan-to-value. The company said FPUSA holds a pipeline of approximately 16 GWh of long-duration energy storage projects, with roughly 2.7 GWh representing high-probability conversion opportunities, including approximately 1.2 GWh expected to be ready to sign.

Eos and FPUSA hold a 2 GWh manufacturing capacity reservation agreement, of which approximately 25% is already allocated to projects advancing toward execution. FPUSA has engaged KKR Capital Markets to develop a financing framework and has structured its portfolio to benefit from a $1.5 billion technology performance insurance policy from Ariel Green.

Eos said eligible stockholders will have the opportunity to participate in the rights offering on substantially the same economic terms as institutional investors. Goldman Sachs & Co. LLC served as sole financial advisor to Eos, while Stifel served as independent financial advisor to the Special Committee of Eos Energy's Board of Directors.

Eos' chief executive Joe Mastrangelo said in a statement that Hudson Bay's investment "closes that gap, bringing FPUSA's equity base to roughly $375 million and enabling the acceleration of project deployment."

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