Shares of Solaris Energy Infrastructure, Inc. (SEI) surged 5.11% in pre-market trading on Thursday, following the company's announcement of pricing for its upsized $135 million convertible senior notes offering. The offering, which was increased from the previously announced $110 million, demonstrates strong investor interest in the company's future prospects.

The 4.75% convertible senior notes, due in 2030, are priced at an initial conversion rate of 37.8896 shares of Class A common stock per $1,000 principal amount. This represents an initial conversion price of approximately $26.39 per share, a 35% premium over the $19.55 public offering price in the concurrent delta offering. The company expects to net approximately $129 million from the offering, which could increase to $148.4 million if underwriters exercise their option to purchase additional notes.

Solaris intends to use the proceeds to purchase a subordinated convertible note from its operating subsidiary, Solaris Energy Infrastructure, LLC. The funds will be directed towards growth capital for additional power generation equipment, including new natural gas turbines and complementary "balance of plant" electrical equipment, supporting customer activity. This strategic move is likely driving investor optimism, as it signals the company's commitment to expansion and meeting growing demand in the energy infrastructure sector.

The successful pricing of this offering, along with the concurrent delta offering of borrowed shares, underscores investor confidence in Solaris's business model and growth strategy. As the company continues to strengthen its position in providing scalable equipment-based solutions for distributed power generation and raw materials management in the oil and gas industry, the market appears to be responding positively to its financial maneuvers and expansion plans.