Liberty Energy Proposes $500M Convertible Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy LBRT?
Source: seekingalpha
- Bond Offering Announcement: Liberty Energy has proposed a private offering of $500 million in convertible senior notes due in 2031, with an option for initial purchasers to buy an additional $50 million within 13 days of issuance, aimed at strengthening the company's capital structure and supporting future growth.
- Interest Payment Structure: The notes will be unsecured senior obligations, with interest payable semiannually starting September 1, 2026, providing a stable financing source while allowing for redemption after March 1, 2029, contingent on stock price performance thresholds being met.
- Clear Use of Proceeds: The net proceeds from the notes will be used for capped call transactions, repaying outstanding amounts under Liberty's credit agreement, and for general corporate purposes, which will help mitigate potential dilution risks and optimize capital allocation.
- Negative Market Reaction: Following the announcement, LBRT shares fell 6.7% in after-hours trading, reflecting market concerns regarding the financing plan, which may impact the company's short-term stock performance and investor confidence.
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Analyst Views on LBRT
Wall Street analysts forecast LBRT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LBRT is 18.91 USD with a low forecast of 13.00 USD and a high forecast of 24.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 23.720
Low
13.00
Averages
18.91
High
24.00
Current: 23.720
Low
13.00
Averages
18.91
High
24.00
About LBRT
Liberty Energy Inc. is an energy services company. The Company is a provider of completion services and technologies to onshore oil, natural gas, and enhanced geothermal energy producers in North America. It also owns and operates Liberty Power Innovations LLC, providing advanced distributed power and energy storage solutions for the commercial and industrial, data center, energy, and mining industries. It provides hydraulic fracturing services and related technologies to onshore oil and natural gas exploration and production (E&P) companies. It offers customers hydraulic fracturing services, together with complementary services including wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, related goods (including its sand mine operations), and technologies to facilitate lower emission completions. The Company’s areas of operations are in all the active shale basins in North America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Liberty Energy Sells $700M Convertible Notes Due 2031
- Increased Offering Size: Liberty Energy announced the sale of $700 million in 0.00% convertible senior notes, up from the previously planned $500 million, with expected closing around February 6, 2026, indicating strong demand in the capital markets.
- Attractive Conversion Terms: Each $1,000 of notes converts into 28.9830 shares of Class A common stock at a conversion price of approximately $34.50, representing a 32.5% premium over the last closing price of $26.04 on February 3, 2026, providing potential capital appreciation for investors.
- Clear Use of Proceeds: The company expects to net about $678.1 million from the offering, allocating approximately $99.4 million for capped call transactions, with remaining funds directed towards debt repayment and general corporate purposes, reflecting a focus on financial stability.
- Additional Purchase Option: Liberty granted initial purchasers an option to buy up to an additional $70 million in notes within 13 days of issuance, which, if fully exercised, could increase net proceeds to approximately $746 million, further enhancing the company's capital structure and flexibility.
See More
Liberty Energy Prices $700 Million Convertible Notes Offering
- Increased Offering Size: Liberty Energy announced the pricing of $700 million in 0.00% convertible senior notes, up from the previously announced $500 million, indicating strong market confidence in its financing needs, with the offering expected to close on February 6, 2026.
- Flexible Conversion Terms: The notes have an initial conversion rate of 28.9830 shares of common stock per $1,000 principal amount, with a conversion price of approximately $34.50 per share, representing a 32.5% premium over the current stock price, providing investors with potential capital appreciation opportunities.
- Clear Use of Proceeds: Liberty intends to use the estimated net proceeds of approximately $678.1 million to fund the costs of Capped Call transactions, repay outstanding debt, and for general corporate purposes, demonstrating a focus on financial stability.
- Risk Management Measures: The company entered into Capped Call transactions with initial purchasers to mitigate dilution from the conversion of notes, further enhancing investor confidence in the future performance of its stock.
See More
Liberty Energy Inc. Prices $700 Million Convertible Notes Offering
- Bond Offering Size: Liberty Energy Inc. announced the pricing of $700 million in 0.00% convertible senior notes, increasing from the previously announced $500 million, reflecting strong market demand, with the offering expected to close on February 6, 2026.
- Conversion Terms Advantage: The initial conversion rate is set at 28.9830 shares of common stock per $1,000 principal amount, with a conversion price of approximately $34.50, representing a 32.5% premium over the current stock price of $26.04, which may attract investors to convert in the future, thereby strengthening the company's capital structure.
- Clear Use of Proceeds: Liberty intends to utilize approximately $678.1 million in net proceeds to fund the costs of Capped Call transactions, repay outstanding debt under a credit agreement, and for general corporate purposes, demonstrating a focus on financial stability.
- Risk Management Measures: The company has entered into Capped Call transactions with initial purchasers to mitigate potential dilution of common stock upon conversion, while also potentially influencing stock price through hedging activities, thereby enhancing investor confidence.
See More
Liberty Energy Prices $700 Million Convertible Notes Offering
- Increased Offering Size: Liberty Energy announced the pricing of $700 million in 0.00% convertible senior notes, up from the previously announced $500 million, indicating strong market demand for its financing needs, with the sale expected to close on February 6, 2026.
- Flexible Conversion Terms: The initial conversion rate is set at 28.9830 shares of common stock per $1,000 principal amount, with a conversion price of approximately $34.50 per share, representing a 32.5% premium over the last closing price of $26.04 on February 3, 2026, which may attract investors to convert in the future, enhancing liquidity.
- Clear Use of Proceeds: Liberty intends to utilize approximately $678.1 million in net proceeds to fund the $99.4 million cost of Capped Call transactions, repay outstanding debt under its credit agreement, and for general corporate purposes, reflecting a focus on financial health and strategic clarity.
- Risk Management Measures: Through Capped Call transactions with initial purchasers, Liberty aims to mitigate potential dilution of equity and offset cash payments upon conversion of the notes, thereby enhancing investor confidence in the company's future performance.
See More
Liberty Energy Proposes $500M Convertible Notes Offering
- Bond Offering Announcement: Liberty Energy has proposed a private offering of $500 million in convertible senior notes due in 2031, with an option for initial purchasers to buy an additional $50 million within 13 days of issuance, aimed at strengthening the company's capital structure and supporting future growth.
- Interest Payment Structure: The notes will be unsecured senior obligations, with interest payable semiannually starting September 1, 2026, providing a stable financing source while allowing for redemption after March 1, 2029, contingent on stock price performance thresholds being met.
- Clear Use of Proceeds: The net proceeds from the notes will be used for capped call transactions, repaying outstanding amounts under Liberty's credit agreement, and for general corporate purposes, which will help mitigate potential dilution risks and optimize capital allocation.
- Negative Market Reaction: Following the announcement, LBRT shares fell 6.7% in after-hours trading, reflecting market concerns regarding the financing plan, which may impact the company's short-term stock performance and investor confidence.
See More
Liberty Energy Proposes $500 Million Convertible Notes Offering
- Bond Offering Plan: Liberty Energy proposes to offer $500 million in convertible senior notes, subject to market conditions, which is expected to enhance the company's capital structure and financial flexibility by attracting qualified institutional buyers.
- Initial Purchaser Option: The initial purchasers will have the option to buy an additional $50 million of notes within 13 days of the initial issuance, providing the company with additional funding support for future investments and operations.
- Interest Payment Arrangement: The notes will start accruing interest on September 1, 2026, with the interest rate and initial conversion rate determined at pricing, which will provide stable cash flow for the company while attracting investor interest in its long-term growth potential.
- Clear Use of Proceeds: Liberty intends to use the net proceeds from the notes offering for entering into Capped Call transactions, repaying debt, and general corporate purposes, which will help optimize its capital structure and enhance the company's financial health.
See More
Liberty Energy Sells $700M Convertible Notes Due 2031
- Increased Offering Size: Liberty Energy announced the sale of $700 million in 0.00% convertible senior notes, up from the previously planned $500 million, with expected closing around February 6, 2026, indicating strong demand in the capital markets.
- Attractive Conversion Terms: Each $1,000 of notes converts into 28.9830 shares of Class A common stock at a conversion price of approximately $34.50, representing a 32.5% premium over the last closing price of $26.04 on February 3, 2026, providing potential capital appreciation for investors.
- Clear Use of Proceeds: The company expects to net about $678.1 million from the offering, allocating approximately $99.4 million for capped call transactions, with remaining funds directed towards debt repayment and general corporate purposes, reflecting a focus on financial stability.
- Additional Purchase Option: Liberty granted initial purchasers an option to buy up to an additional $70 million in notes within 13 days of issuance, which, if fully exercised, could increase net proceeds to approximately $746 million, further enhancing the company's capital structure and flexibility.
See More
Liberty Energy Prices $700 Million Convertible Notes Offering
- Increased Offering Size: Liberty Energy announced the pricing of $700 million in 0.00% convertible senior notes, up from the previously announced $500 million, indicating strong market confidence in its financing needs, with the offering expected to close on February 6, 2026.
- Flexible Conversion Terms: The notes have an initial conversion rate of 28.9830 shares of common stock per $1,000 principal amount, with a conversion price of approximately $34.50 per share, representing a 32.5% premium over the current stock price, providing investors with potential capital appreciation opportunities.
- Clear Use of Proceeds: Liberty intends to use the estimated net proceeds of approximately $678.1 million to fund the costs of Capped Call transactions, repay outstanding debt, and for general corporate purposes, demonstrating a focus on financial stability.
- Risk Management Measures: The company entered into Capped Call transactions with initial purchasers to mitigate dilution from the conversion of notes, further enhancing investor confidence in the future performance of its stock.
See More
Liberty Energy Inc. Prices $700 Million Convertible Notes Offering
- Bond Offering Size: Liberty Energy Inc. announced the pricing of $700 million in 0.00% convertible senior notes, increasing from the previously announced $500 million, reflecting strong market demand, with the offering expected to close on February 6, 2026.
- Conversion Terms Advantage: The initial conversion rate is set at 28.9830 shares of common stock per $1,000 principal amount, with a conversion price of approximately $34.50, representing a 32.5% premium over the current stock price of $26.04, which may attract investors to convert in the future, thereby strengthening the company's capital structure.
- Clear Use of Proceeds: Liberty intends to utilize approximately $678.1 million in net proceeds to fund the costs of Capped Call transactions, repay outstanding debt under a credit agreement, and for general corporate purposes, demonstrating a focus on financial stability.
- Risk Management Measures: The company has entered into Capped Call transactions with initial purchasers to mitigate potential dilution of common stock upon conversion, while also potentially influencing stock price through hedging activities, thereby enhancing investor confidence.
See More
Liberty Energy Prices $700 Million Convertible Notes Offering
- Increased Offering Size: Liberty Energy announced the pricing of $700 million in 0.00% convertible senior notes, up from the previously announced $500 million, indicating strong market demand for its financing needs, with the sale expected to close on February 6, 2026.
- Flexible Conversion Terms: The initial conversion rate is set at 28.9830 shares of common stock per $1,000 principal amount, with a conversion price of approximately $34.50 per share, representing a 32.5% premium over the last closing price of $26.04 on February 3, 2026, which may attract investors to convert in the future, enhancing liquidity.
- Clear Use of Proceeds: Liberty intends to utilize approximately $678.1 million in net proceeds to fund the $99.4 million cost of Capped Call transactions, repay outstanding debt under its credit agreement, and for general corporate purposes, reflecting a focus on financial health and strategic clarity.
- Risk Management Measures: Through Capped Call transactions with initial purchasers, Liberty aims to mitigate potential dilution of equity and offset cash payments upon conversion of the notes, thereby enhancing investor confidence in the company's future performance.
See More
Liberty Energy Proposes $500M Convertible Notes Offering
- Bond Offering Announcement: Liberty Energy has proposed a private offering of $500 million in convertible senior notes due in 2031, with an option for initial purchasers to buy an additional $50 million within 13 days of issuance, aimed at strengthening the company's capital structure and supporting future growth.
- Interest Payment Structure: The notes will be unsecured senior obligations, with interest payable semiannually starting September 1, 2026, providing a stable financing source while allowing for redemption after March 1, 2029, contingent on stock price performance thresholds being met.
- Clear Use of Proceeds: The net proceeds from the notes will be used for capped call transactions, repaying outstanding amounts under Liberty's credit agreement, and for general corporate purposes, which will help mitigate potential dilution risks and optimize capital allocation.
- Negative Market Reaction: Following the announcement, LBRT shares fell 6.7% in after-hours trading, reflecting market concerns regarding the financing plan, which may impact the company's short-term stock performance and investor confidence.
See More
Liberty Energy Proposes $500 Million Convertible Notes Offering
- Bond Offering Plan: Liberty Energy proposes to offer $500 million in convertible senior notes, subject to market conditions, which is expected to enhance the company's capital structure and financial flexibility by attracting qualified institutional buyers.
- Initial Purchaser Option: The initial purchasers will have the option to buy an additional $50 million of notes within 13 days of the initial issuance, providing the company with additional funding support for future investments and operations.
- Interest Payment Arrangement: The notes will start accruing interest on September 1, 2026, with the interest rate and initial conversion rate determined at pricing, which will provide stable cash flow for the company while attracting investor interest in its long-term growth potential.
- Clear Use of Proceeds: Liberty intends to use the net proceeds from the notes offering for entering into Capped Call transactions, repaying debt, and general corporate purposes, which will help optimize its capital structure and enhance the company's financial health.
See More
