Eos Energy Enterprises Announces $75M Equity Investment From Hudson Bay Capital Management In Support Of The Company's Commitment To The Fro

Hudson Bay has also committed to invest $50 million directly into FPUSA, subject to certain conditions.

The commitment brings FPUSA’s expected equity investment up to approximately $375 million, assuming full subscription in the Company’s proposed rights offering.

Under FPUSA's planned financing model, that equity base is expected to support more than $1.5 billion of deployable project capital at approximately 75% loan-to-value (LTV).

The Hudson Bay investment is additive to the previously announced $100 million commitment from Cerberus Capital Management and Eos’ own expected contribution of up to $150 million, which the Company intends to fund through the upcoming rights offering.

Hudson Bay’s $75 million investment into Eos is being made on the same economic terms as the planned rights offering and is expected to allow its participation in the offering as a holder of record.

By structuring the majority of Hudson Bay’s commitment on terms available to existing shareholders, the Company is aligning new institutional capital with its current investor base.

The Company is raising this capital to build FPUSA’s equity base, which, under its planned financing model, is expected to support project deployment at multiples of the invested capital.

Eos is expected to retain an economic interest in FPUSA, with the size of that interest to be determined following completion of the rights offering and the level of shareholder participation.

The market for U.S.-manufactured long-duration energy storage continues to grow as customers seek solutions that improve grid reliability, support rising power demand, and enhance energy security.

As projects move toward construction, developers increasingly need integrated solutions that combine development, manufacturing, financing, and execution.

FPUSA was established to meet that need.

The additional capital supports strong customer demand and the continued expansion of FPUSA’s project pipeline.

FPUSA has a robust pipeline of approximately 16 GWh of long-duration energy storage projects across key U.S. markets.

Approximately 2.7 GWh of the pipeline represents high-probability conversion opportunities, including approximately 1.2 GWh expected to be ready to sign.

A portion of those projects is anticipated to reach notice to proceed in the near term, creating opportunities for capital deployment.

By combining project development, dedicated manufacturing capacity, financing, and execution under one platform, FPUSA is designed to convert late-stage opportunities into operating assets.

With arm’s length commercial terms, that model is expected to accelerate demand for Eos’ Z3™ technology and expands the Company’s participation in long-term project value.

FPUSA is moving quickly from platform formation into execution.

Eos and FPUSA hold a previously announced 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 build a scalable financing framework and has structured its portfolio to benefit from a $1.5 billion technology performance insurance policy from Ariel Green.

Separately, FPUSA’s partnership with Stella Energy Solutions provides access to Stella’s 2 GWh utility-scale project pipeline and the execution capability to bring those projects into conversion.