ChargePoint Holdings, Inc., prominently recognized in the electric vehicle (EV) charging solution sector, has successfully garnered a robust $232M in financial backing during the current fiscal quarter. This infusion includes $175M of fresh equity through the company’s “at-the-market” (ATM) offering facility, spearheaded by the lead investor involved in the $300M convertible notes (“Notes”) initiative from April 2022. In a separate move within the same quarter, ChargePoint amassed an additional $57M via the ATM facility.
Why It Matters
This financial boost is pivotal for ChargePoint as it paves the way toward the company’s strategic ambition of attaining adjusted EBITDA profitability by the fourth fiscal quarter of the subsequent year. According to Rex Jackson, CFO of ChargePoint, these capital raises, accompanied by the recently unveiled $150M revolving credit facility, are meticulously aligned with their overarching capital strategy, fortifying the company’s financial posture while concurrently ensuring no further reliance on the ATM in the foreseeable future.
Key Points
- Significant Financial Raise: ChargePoint has successfully raised a total of $232M this quarter.
- Support for Strategic Objectives: The funding facilitates the achievement of adjusted EBITDA profitability, targeted for the next fiscal year’s fourth quarter.
- Adjustments to Convertible Notes Terms: Agreements have been solidified to modify the terms of the outstanding $300M Notes, including extensions of maturity from April 1, 2027, to April 1, 2028, an increase in the cash coupon from 3.5% to 7% per annum, a rise in the payment in kind coupon from 5% to 8.5% per annum, and an adjustment of the conversion price per share from $24.03 to $12.00.
- Guidance and Assistance: Evercore has played an integral role as the exclusive financial advisor to ChargePoint in this financial endeavor.
Bottom Line
ChargePoint’s substantial financial injection, to the tune of $232M, cohesively meshes with its capital strategy, solidifying its fiscal framework while edging closer to its profitability aspirations slated for the subsequent fiscal year. These maneuvers not only facilitate a firmer footing in the competitive EV charging domain but also exemplify ChargePoint’s adept financial management and strategic foresight. Furthermore, the agreed-upon modifications to the existing convertible notes underline a collaborative rapport between ChargePoint and its investors, ensuring mutual alignment in financial strategies and corporate objectives.
As the EV market continues to grow, ChargePoint’s enhanced financial stability and strategic advancements signify a positive trajectory, ensuring its continued pivotal role in the networked EV charging solution space.
