Eos Energy (NASDAQ: EOSE) Announces Strategic Investment of up to $315.5 Million from Cerberus to Propel Eos’ Expansion and Path to Profitability

Significant strategic investment supports Company’s growth plans in an accelerating long duration battery storage market and enables Eos to restructure existing debt

TURTLE CREEK, Pa. and NEW YORK, June 24, 2024  — Eos Energy Enterprises, Inc. (NASDAQ: EOSE) (“Eos” or the “Company”), a leading provider of safe, scalable, efficient, and sustainable zinc-based long duration energy storage systems, today announced a strategic investment of up to $315.5 million from an affiliate of Cerberus Capital Management LP (“Cerberus”), to support its growth plans during a secular shift in global energy markets. The demand for safe alternatives to incumbent battery technologies is increasing and the world is facing significant energy growth along with an increased focus on higher energy independence and security. Cerberus is a global leader in alternative investing with a dedicated platform focused on supply chain integrity and national security. The companies believe that this investment should accelerate Eos’ operating capabilities and industry position.

The long-duration energy storage segment is forecasted to more than double by 2030, driven by increased energy demand from data centers and artificial intelligence growth combined with lower carbon energy mix targets and supportive government policies. This investment is structured to allow the Company to meet growing market demand effectively as evidenced by Eos’ $13.3 billion pipeline and $602.7 million orders backlog as of March 31, 2024. This funding supports Eos’ plan to scale operations and execute on its path to profitability.

“We are thrilled to partner with Cerberus at a pivotal moment in Eos’ history. This investment provides the critical funding needed to execute our profitability roadmap, while also providing our customers with the confidence that Eos can produce at scale,” said Eos Chief Executive Officer Joe Mastrangelo. “Cerberus’ investment, combined with their deep operational and technical knowledge, enables us to expand our manufacturing capacity, streamline our supply chain, and strengthen our market position.”

This partnership leverages both companies’ commitments to advancing domestic manufacturing and innovation and strengthens Eos’ position as a leading provider of American-made energy storage solutions. As the United States continues to transition towards a more sustainable and energy independent future, demand is growing for long duration battery storage that ensures grid stability, resilience, and efficiency.

“Cerberus is ecstatic to be investing in what we believe to be the United States’ first scalable non-lithium BESS platform. Eos has evolved dramatically in recent years in both cell technology and manufacturing efficiency, making the Company now ready to accelerate its first mover-advantage in long-duration energy storage,” said Nick Robinson, Managing Director of Cerberus’ Supply Chain and Strategic Opportunities platform. “With Joe’s leadership, plus Cerberus’ focus on U.S. innovation in critical technologies and next-generation manufacturing capabilities, we could not be more excited and prouder to help Eos build a big and incredibly important company for the U.S. and our allies for many years to come.”

The capital investment will be instrumental in enabling Eos to deliver a differentiated product, a simple and safe energy storage solution with proprietary software capabilities. The investment by Cerberus is structured as a $210.5 million delayed draw term loan that is partially based upon achieving operational milestones, and a $105 million revolver that the Company may draw upon, if required, at Cerberus’ discretion. In addition, Eos will utilize a portion of the proceeds to retire its existing $100 million senior secured term loan on favorable terms, strengthening the Company’s balance sheet. The Company reached an agreement to extinguish this debt for $27 million, of which $20 million has been paid and the remaining $7 million will be payable over the next twelve months.

Eos Chief Financial Officer Nathan Kroeker added, “The strategic investment announced today, combined with Eos’ highly efficient manufacturing capacity model, supports our capital needs as we execute on Project AMAZE. We look forward to working with Cerberus and their strong network to continue driving down product costs, improving performance of our storage systems, and developing financing alternatives for our customers. Our broader strategy remains unchanged, and we remain committed to the cost-out milestones and our path to profitability previously outlined at our December 2023 Strategy Call.”

Eos continues to work closely with the U.S. Department of Energy with respect to closing on the previously announced conditional commitment for a loan guarantee. With Cerberus’ backing, Eos is well-positioned to accelerate its growth to meet the increasing demand for sustainable energy solutions.

Mastrangelo concluded, “Today’s announcement is a clear testament to the strength of Eos’ vision and serves as an important validation for the need to scale an American-made battery storage solution. It also demonstrates the commitment of a recognized global strategic partner in Eos’ ability to provide sustainable value to each of our stakeholders well into the future.”

Strategic Investment Transaction Details
Pursuant to Cerberus’ strategic investment, Eos’ ability to draw on a portion of the $210.5 million delayed draw term loan is contingent upon achieving certain operational milestones through April 2025 agreed between the parties, with the remaining $105 million revolver to be drawn, if required, at Cerberus’ discretion. As part of the strategic investment, assuming the delayed draw term loan is fully funded and depending on the Company’s ability to achieve the operational milestones, Cerberus will receive penny warrants and non-voting convertible preferred stock equivalent to 33% with the potential to reach 49%, depending on the achievement of operational milestones, of the outstanding equity of the Company, on a fully diluted basis. Initial funding of $75 million in gross proceeds was received at closing on June 21, 2024, and Cerberus was issued 43.3 million penny warrants and shares of non-voting redeemable non-convertible preferred stock with a liquidation preference equivalent to 31.9 million shares of common stock in connection with this initial funding. Subject to receipt of stockholder approval under Nasdaq listing rules, the non-voting convertible preferred stock would ultimately become convertible into common stock.

Haynes Boone, LLP served as Eos’ legal advisor. Cooley LLP served as Cerberus’ legal advisor.

Conference Call Details
Eos will hold a webcast conference call on Monday, June 24, 2024, from 9:00 a.m. to 9:20 a.m. ET to discuss the strategic investment with Cerberus. To access the call by webcast, please register in advance using this link (Registration Link). Interested parties may join the conference call beginning at 8:45 a.m. ET. A live webcast of the conference call will be available on Eos’ Investor Relations website at https://investors.eose.com.

The conference call replay will be available via webcast through Eos’ investor relations website for a limited time. The webcast replay will be available beginning at 11:30 a.m. ET on June 24, 2024, and can be accessed by visiting https://investors.eose.com/events-and-presentations.

About Eos Energy Enterprises
Eos Energy Enterprises, Inc. is accelerating the shift to clean energy with positively ingenious solutions that transform how the world stores power. Our breakthrough Znyth™ aqueous zinc battery was designed to overcome the limitations of conventional lithium-ion technology. It is safe, scalable, efficient, sustainable, manufactured in the U.S., and the core of our innovative systems that today provides utility, industrial, and commercial customers with a proven, reliable energy storage alternative for 3 to 12-hour applications. Eos was founded in 2008 and is headquartered in Edison, New Jersey. For more information about Eos (NASDAQ: EOSE), visit eose.com.

About Cerberus
Founded in 1992, Cerberus is a global leader in alternative investing with approximately $65 billion in assets across complementary credit, real estate, and private equity strategies. We invest across the capital structure where we believe our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.

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