Atlas Energy slides after $300 mln convertible bond offering unveil

Oil and gas logistics firm Atlas Energy Solutions' AESI.N shares down 11.3% premarket at $10.78 as it looks to raise capital

Austin, Texas-based proppant (frac sand) supplier offering privately $300 mln 5-yr convertible bonds

It intends to use approx $66 mln of net offering proceeds to repay lease agreement with Stonebriar Commercial Finance, and approx $75 mln to repay credit facility

AESI also plans to use some proceeds to fund cost of capped calls, derivative transactions employed to help offset potential dilution

Any remainder to be used for general corp purposes, including to purchase a portion of power generation equipment under its global framework agreement with Caterpillar CAT.N

Last month, AESI entered $840 mln deal with CAT through 2029 to support private grid development pipeline

AESI has ~$1.5 bln market cap as of last close

AESI stock fell for 5th straight session on Thurs, ending down 0.4%, trimming YTD gain to ~29%

Of 11 analysts covering the stock, 4 rate "strong buy" or "buy", 5 rate "hold" and 2 recommend "sell"; median PT $12.50, per LSEG data