Eos Energy Enterprises announced the expected initial capitalization of Frontier Power USA, its joint venture with Cerberus Capital Management formed to develop, finance, own, and operate long-duration energy storage projects using Eos technology. The capitalization includes proceeds from a rights offering that expired on July 21, 2026, raising gross proceeds of approximately $37.7 million, along with a previously announced equity offering, exceeding the company’s original $250 million equity target for the platform.
Frontier Power USA is expected to have approximately $263 million in gross proceeds raised from three holders: approximately $113 million from Eos through its rights offering and previously announced offering, $100 million from Cerberus Capital Management, and $50 million from Hudson Bay Capital Management. Combined with a broader financing package, the equity base is expected to support more than $1 billion of deployable project capital, including approximately 75 percent loan-to-value project debt.
The joint venture holds a pipeline of approximately 16 gigawatt-hours of opportunities, with approximately 5.0 gigawatt-hours purchased, selected, or under active diligence for inclusion in the platform, including roughly 1.8 gigawatt-hours already under construction or approaching notice to proceed. Eos said these projects are expected to support equipment deliveries and project revenue through 2026 and into 2027. The initial capitalization is expected to close in early August, subject to customary closing conditions.
KEY QUOTE:
“When we announced Frontier Power USA, we set a target of approximately $250 million in equity raised to capitalize the platform. Today that target is expected to be exceeded, funded through our rights offering and commitments from Hudson Bay Capital and Cerberus Capital Management. I exercised my rights in this offering, along with other members of our Board and management team, because we believe this capital structure positions Eos for sustained growth and long-term shareholder value.”
Joe Mastrangelo, Chief Executive Officer, Eos Energy Enterprises
