Aspen Aerogels announces pricing of $240M in common stock

NORTHBOROUGH, Mass. – Aspen Aerogels Inc. on Wednesday announced the pricing of 25.2 million shares of its common stock available to the public that is expected to gross roughly $240 million.

The company designs, develops and manufactures aerogel insulation and has a manufacturing facility in East Providence.

Aspen Aerogels expects to use the proceeds to partially fund the construction of Phase I of its second aerogel manufacturing facility in Statesboro, Ga., and for other general corporate purposes.

The shares are priced at $9.50 per common share. All of the shares in the offering are being sold by the company.

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The offer is expected to close on Dec. 2 and is subject to customary closing conditions.

Aspen reported a loss of $29.6 million in the third quarter of 2022 in its most recent quarterly filing.

On Tuesday, the company, along with its wholly owned subsidiary, Aspen Aerogels Georgia LLC, announced it has secured a $100 million loan agreement with General Motors Holdings LLC in connection with Aspen’s construction and equipping of its second aerogel manufacturing facility in Statesboro.

The company will be able to draw on a periodic basis from January 2023 through September 2023, subject to certain conditions. The loan has a maturity date of March 31, 2025, and carries no prepayment penalty.

“Aspen is pleased to add this additional financial dimension to our strong technical and commercial relationship with GM,” said Donald R. Young, Aspen’s CEO and president. “GM’s investment will be dedicated to support the construction of our new, state-of-the-art aerogel manufacturing facility in Georgia, which is designed to triple Aspen’s nameplate aerogel capacity in support of our significant growth plans.”