Waltham-based A123 Systems, a developer and manufacturer of lithium iron phosphate batteries and systems, today announced a private offering of $50 million of Senior Unsecured Convertible Notes and Warrants, debt security with an option to be converted into a predefined amount shares.
A123 has operations in Westborough and Hopkinton.
The company said it intends to use the proceeds from the sale of the notes for general corporate purposes.
The notes will have an annual interest rate of 6 percent, subject to certain adjustments, and will mature in July 2013. They'll be convertible into shares of the company's common stock initially at a fixed conversion price.
The offering is expected to close on or about May 18.