Generac Holdings Inc. has entered into a long-term supply and transaction agreement with Amazon.com, Inc. to provide backup power generators for Amazon's data centers. In connection with the agreement, Generac issued a warrant to an Amazon subsidiary to purchase up to 1,693,745 shares of its common stock.
Key Details
- Warrant Issuance: Amazon's subsidiary received a warrant to acquire up to 1,693,745 shares at an exercise price of $200.9266 per share, expiring September 16, 2033.
- Vesting & Supply Terms: An initial 307,954 shares vested immediately. The remaining shares will vest in tranches as Generac receives aggregate payments from Amazon for generators, up to a total of $8 billion.
- Initial Deliveries: The company expects initial deliveries under the supply agreement to total $2.4 billion in 2027 and 2028.