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SEC filingEos Energy Enterprises entered a binding term sheet for a joint venture with Cerberus and Hudson Bay, involving $150M investment and a $150M rights offering to fund its contribution.
Eos Energy Enterprises announced a binding amended and restated term sheet with Cerberus Capital Management affiliate CCM Frontier and Hudson Bay Capital affiliate HBC to form a joint venture, Frontier Power USA Parent, LLC. The transaction is structured to create a platform for frontier power development. CCM Frontier will contribute $100 million and receive Class A units and a warrant for 20 million shares at $5.481. HBC will invest $50 million for Class C units and a warrant for 10 million shares at the same price. Eos will fund its Class B contribution primarily through a $150 million rights offering to existing shareholders and warrant holders, issuing units at $5.481 per unit (one share plus 0.4388 warrants). The joint venture will be governed by a board with majority control by CCM Frontier, while day-to-day management will be delegated to a CCM affiliate. HBC has exchange rights to convert Class C units into Eos common shares at escalating prices up to $20.00 before year-end 2026. Closing is subject to completion of the rights offering, DOE consent, and final commercial framework. This strategic partnership provides Eos with substantial capital to pursue its energy storage business while aligning with seasoned investors. However, the transaction is still subject to conditions, and definitive agreements are yet to be signed.