AEIS · Advanced Energy Industries, Inc.

Advanced Energy Industries, Inc. (Nasdaq: AEIS) announced the redemption of all remaining $136.7 million of its 2.50% Convertible Senior Notes due 2028 (CUSIP 007973AE0). The redemption date is September 23, 2026, with a redemption price of 100% of principal plus accrued but unpaid interest to, but excluding, that date. Holders may convert their notes at any time before 5:00 p.m. New York City time on September 22, 2026, under the terms of the Indenture. For conversions made in connection with the redemption notice, the conversion rate is increased by 0.0743 additional shares per $1,000 principal amount, bringing the effective conversion rate to approximately 7.3490 shares per $1,000 principal. The company will settle conversions by paying cash for the principal portion and delivering shares of common stock for the excess, with no separate cash payment for accrued interest. This redemption eliminates the company's remaining convertible debt, reducing interest expense and simplifying the capital structure. However, if a significant number of holders elect to convert, it could result in dilution to existing shareholders. After the redemption date, holders will only be entitled to the redemption price from the paying agent. This strategic move likely reflects Advanced Energy's focus on optimizing its balance sheet and reducing leverage.