AEIS · Advanced Energy Industries, Inc.

Advanced Energy Industries, Inc. announced a proposed offering of $1.0 billion aggregate principal amount of Convertible Senior Notes due 2031 in a private transaction exempt from registration under the Securities Act. The notes will be offered only to qualified institutional buyers under Rule 144A. The company also expects to grant initial purchasers an option to purchase up to an additional $150 million in notes. The notes will mature on May 15, 2031, unless earlier converted, redeemed, or repurchased, and will pay interest semiannually. The initial conversion rate and other terms will be determined by negotiations with the initial purchasers.

Proceeds from the offering will be used to pay the cost of capped call transactions intended to reduce potential dilution upon conversion of the notes. Additionally, the company expects to use a portion of the net proceeds, along with shares of its common stock, to exchange for certain of its previously issued 2.50% Senior Convertible Notes due 2028. The remainder will be used for general corporate purposes, including potential retirement of the remaining 2028 notes outside the exchange.

The notes will be senior unsecured obligations, ranking senior to any subordinated indebtedness, equal in right of payment to unsubordinated debt (including the 2028 notes), effectively junior to secured debt to the extent of collateral, and structurally junior to all liabilities of subsidiaries. The offering is subject to market and other conditions. This press release does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities.