BKV Corporation announced the pricing of an upsized offering of convertible senior notes on September 9, 2026. The company is offering $500 million in aggregate principal amount of the notes, which are due to mature on October 15, 2031. The notes will be senior, unsecured obligations of BKV and will accrue interest payable semi-annually.
Initial purchasers have been granted an option to purchase up to an additional $75 million in principal amount of the notes. The notes will be offered in a private placement to eligible purchasers pursuant to Rule 144A under the Securities Act of 1933. Neither the notes nor the shares of common stock issuable upon conversion have been registered under the Securities Act.
BKV intends to use the net proceeds from the offering for general corporate purposes, including the repayment of outstanding indebtedness and capital expenditures. Approximately $35.0 million of the proceeds is expected to be used to repurchase shares of common stock at the price per share on the date of pricing. Additionally, a portion of the proceeds will be used to fund the costs of entering into capped call transactions with the initial purchasers and other financial institutions. These transactions are expected to reduce the potential dilution to common stock upon conversion of the notes.
