AEIS · Advanced Energy Industries, Inc.

Advanced Energy's issuance of $1 billion in 0% Convertible Senior Notes due 2031 provides significant non-dilutive capital at zero interest cost until maturity or conversion, priced at a 50% premium to the May 13, 2026 closing stock price of $339.19. The structure includes cash settlement up to principal with shares or cash for excess, redeemable after May 21, 2029 under specific conditions, and fundamental change repurchase rights. Capped calls at $678.38 cap mitigate dilution and excess cash payments upon conversion. Concurrently, the company is exchanging $438.3 million of its 2028 2.50% notes using $442.4 million cash and 1.98 million shares, alongside unwinding related hedges for a $44.6 million net receipt. Expected net proceeds of $980.8 million (or up to $1,128.1 million with option exercise) bolster liquidity after these uses, targeted at general corporate purposes including further 2028 note retirement. As senior unsecured obligations, the notes rank equally with existing unsubordinated debt like the 2028 notes but junior to secured debt and subsidiary obligations. Hedge activities by counterparties may impact stock volatility. This refinancing extends debt maturity, reduces interest expense, and positions the balance sheet for growth initiatives in precision power solutions.