New York, June 11, 2026, 10:49 AM (ET)
- Shares of PureCycle Technologies dropped roughly 16% on Thursday after the company set the price on a combined offering of debt and stock.
- The company is offering 17.66 million shares priced at $8.21 each, and plans to sell $250 million in 4.75% convertible senior notes maturing in 2032.
- PureCycle plans to use much of the money to buy back its 7.25% green convertible notes maturing in 2030.
PureCycle Technologies, Inc. shares dropped hard Thursday after the company landed a $395 million financing deal that brings in new capital but puts more common shares on the table and brings the risk of future conversion. The stock, which trades on Nasdaq, changed hands at $8.27, down $1.62, or roughly 16.4%. Volume jumped above 16.9 million shares, market data showed.
PureCycle set the price for $250 million in 4.75% convertible senior notes maturing in 2032 and offered 17,661,388 shares of common stock at $8.21 each, which together brought in $395 million in gross proceeds.
New dilution is front and center for existing PureCycle holders as the stock offering brings in almost 17.7 million new shares, before any greenshoe. Underwriters also got a 30-day window to pick up to $37.5 million more in notes, plus 2,283,800 extra shares.
PureCycle said it expects both offerings to close around June 15, 2026, if standard conditions are met. The closings aren’t tied together. The company put estimated net proceeds at $242.0 million from the notes and $137.1 million from the equity sale, not counting any over-allotments.
The company is targeting about $246.3 million from the offering to buy back around $216.0 million principal value of its 7.25% green convertible notes that come due in 2030. The rest of the money could go to more repurchases, or for working capital and general corporate needs.
The new 2032 notes carry a 4.75% annual coupon, starting to accrue on June 15, 2026. Interest will be paid every six months, beginning January 1, 2027. Maturity comes on July 1, 2032, unless PureCycle buys them back, redeems them or holders convert earlier. PureCycle set the initial conversion price at about $11.08, putting the premium at 35% over the $8.21 stock-offering price.
PureCycle shares dropped Thursday after the company priced its $395 million capital raise, Benzinga said. The stock was off about 15% to $8.40 around publication time.
PureCycle disclosed in a June 10 SEC filing that it changed its revolving credit agreement to allow the offerings. The same filing said the credit agreement includes a revolving facility for up to $200 million. Sylebra-affiliated lenders are listed as beneficial owners of more than 5% of the company.
PureCycle’s update to its capital structure follows first-quarter numbers out a little over a month ago. The company reported record production of 8.4 million pounds in Q1, with revenue rising for the fifth straight quarter. Liquidity ended the quarter at $131 million. Net loss for Q1 came in at $33.4 million, with adjusted EBITDA at negative $30.9 million.
PureCycle had new operational news this week. The company said on June 9 it partnered with Innovia Films to make and test white cavitated BOPP film using its PureFive Choice recycled polypropylene. That film contains over 40% post-consumer recycled content.
The stock slid Thursday as financing terms took priority over product news. Investors now wait to see if the offerings finish as set, around June 15, and if underwriters take up any part of the extra note or share options.
