Fuel cell developer Bloom Energy has hired a financial adviser as it looks to refinance a chunk of its debt maturities.

The San Jose, Calif.-based company is working with Jefferies on the transaction, which it expects to complete by the first half of 2020.

A range of options is being considered, with a focus on enhancing financial flexibility, according to the company's third quarter earnings report.

“At a high level, we will either use a portion of our existing cash to pay down a portion of the notes or refinance all for a portion of our existing notes,” Bloom’s CFO, Randy Furr, said during an earnings call, noting that the company's primary goal is to accomplish this with the least amount of dilution. “Think of this as an extension, but likely under new terms for we will raise new money and pay off all or a portion of our existing notes or do a combination of the three."

The company's outstanding debt as of June 30, according to its second quarter 10-Q filing, comprises:

Type  Principal Unpaid Balance* Coupon/Margin Year Due
Non-recourse term loan $32.5 million $24.3 million Libor + 5.25% October, 2020
Recourse term loan $12 million $2.4 million Libor + 4% November, 2020
Convertible promissory notes $193.2 million $33.1 million 5% December, 2020
Convertible promissory notes $260 million $296.2 million 6% December, 2020
Non-recourse term loan $131.2 million $123.7 million Libor + 2.5% December, 2021
Recourse notes $100 million $100 million 10% July, 2024
Non-recourse term loan $46.8 million $39.3 million 7.50% September, 2028
Non-recourse notes $99 million $82.3 million 6.07% March, 2030

*as of June 30.

Bloom develops onsite energy servers for its customers that generate electricity using solid oxide fuel cell technology. The company recently announced a collaboration with Samsung Heavy Industries to design and develop ships powered by fuel cells running on natural gas.

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