PureCycle Shares Drop 16% Following Dual Offering Pricing

The company plans to generate $395 million in gross proceeds by issuing 4.75% convertible senior notes due in 2032 alongside 17.7 million shares priced at $8.21 each. Underwriters hold a 30-day window to purchase an additional $37.5 million in notes and 2.28 million shares, which could further increase the total capital raised.

Management intends to allocate these funds toward repurchasing existing 7.25% green convertible notes due in 2030, while designating the remaining capital for general corporate expenses and working capital requirements. Despite this effort to refinance debt, the market reaction reflects investor caution, leaving the stock down 3.7% for the year.