Top 10 Influencers in 2025After careful calculation, I was initially wondering if 35 would be diluted, but this company is truly a decent one; they themselves have already hedged for the old shareholders, meaning there's no need to worry about dilution until the stock price rises above 52.
Moreover, the management has a very strong upward expectation for the recent stock price. They would never set a conversion price far above the current market price and a sky-high capped option exercise price without reason. It's almost like giving the market a clear price target guidance. They believe the stock price could hit around 52 within the year or in the near future.
What kind of business requires the company to raise such a huge amount of funds so urgently and with such confidence, while also hinting that the stock price could double? At least for now, it seems both insiders (management) and smart money (institutional creditors) are confident.
$Liberty Energy(LBRT.US)
The detailed terms are that the institutional cost is above 34.5, and the company itself believes its stock price can reach around 52 within the year:
Conversion price: Approximately 34.58 per share, a 32.5% premium over the pre-issuance stock price of about 26.10; this means the stock price must rise above 34.58 for creditors to choose to convert.
Conversion ratio: 28.9185 shares / $1,000 principal, with each $1,000 principal bond convertible into about 28.9 shares of the company's stock.
Capped call options have been purchased simultaneously; the company used part of the raised funds to buy options, pushing the actual dilution threshold from 34.58 further up to 52.20, a premium of about 100% over the current price.
Coupon rate: 3.75%, extremely low financing cost; compared to LBRT's current conventional debt rate of about 7%-8%, this financing can save tens of millions of dollars in interest expenses annually, reflecting the bond market's strong confidence in its power transition prospects.
$Liberty Energy(LBRT.US)
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