Form Energy has secured a $270 million credit facility. Barclays structured the deal, with a syndicate comprising Citi, JPMorgan, Wells Fargo, Jefferies, RBC, Société Générale, and Stifel. The funds will be used to ramp up production of iron-air batteries at the Form Factory 1 plant in Weirton, West Virginia, and to support working capital.
In August, the company raised $750 million in equity through a Series G round; it has now supplemented this with bank debt. This financing does not alter the company's valuation or dilute shareholder stakes.
The facility consists of two components: a revolving credit line and an advance against Section 45X tax credits. The U.S. grants this incentive for domestic component manufacturing, and the benefit scales with production volume. The total facility limit can be expanded to $1 billion.
The syndicate of eight banks is essentially financing the plant's future output: funds are being provided now against incentives that will only materialize once serial production begins. Form Energy has already secured orders, and now has bank funding in place to fulfill them.