Good day, and thank you for standing by. Welcome to the Eos Energy conference call. At this time, all participants are in a listen-only mode. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Liz Higley, Director of Investor Relations. Please go ahead.
Good morning, everyone, and thank you for joining us on such short notice this morning. Before we begin, allow me to provide a disclaimer regarding forward-looking statements. This call, including the Q&A portion of the call, may include forward-looking statements, including but not limited to, current expectations with respect to future results and outlook for our company, the delayed draw term loan from an affiliate of Cerberus Capital Management, milestones thereunder, and our ability to meet them, and the anticipated use of proceeds from draws under the loan, and statements regarding our ability to secure final approval of a loan from the Department of Energy LPO, or our anticipated use of proceeds from any loan facility provided by the U.S. Department of Energy, which are subject to certain risks, uncertainties, as of and assumptions.
Should any of these risks materialize or should our assumptions prove to be incorrect, our actual results may differ materially from our expectation or those implied by these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to are described in our SEC filings. Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made. We undertake no obligation to update any forward-looking statements made during this call to reflect events or circumstances after today, or to reflect new information or the occurrence of unanticipated events expected as required by law. The conference call will be available for replay via webcast through Eos Investor Relations website at investors.eose.com. With that, I'll now turn the call over to our Eos CEO, Joe Mastrangelo.
Good morning, everyone, and thanks for joining us today for an announcement of a transformational investment in Eos from Cerberus' Supply Chain Strategic Opportunities Platform. We're really excited to be with you this morning to talk about this investment and how it allows us as a company to now focus on the long-term strategy for the company that we laid out in our strategic outlook back in December, which you see on the screen today. The matchup between Eos and Cerberus was really one from day one, that we saw alignment between the vision of Eos becoming a domestic champion for long-duration energy storage, and Cerberus establishing a fund focused on the same goal. As we look at Cerberus investing in Eos, we really look at this as an opportunity for our company to play bigger.
Play bigger in the sense that our Cerberus brings to Eos a wealth of capability and experience. $65 billion assets under management company has a tremendous amount of resources that we can lean into to allow Eos to play bigger in a market that we really see accelerating here over the past couple of months. Accelerating as we've seen a significant amount of demand increase for reliable, safe, power, be driven mostly by AI and data center growth. When we look at what's happening in the market, we realize that, you know, we have been running Eos over the past few years from one capital raise to the next capital raise, and proving out the technology, proving out the ability to scale the company, manufacture a core product, proving out that that product can operate out in the field per the design specifications that we've discussed with customers.
That's what really got Cerberus to believe in the investment that they're making in Eos. What it now allows us to do as a company is really take off the table the time that we've been spending raising capital, focus on bringing in the capital from Cerberus, and weaving in and closing the loan with the LPO from our conditional commitment we got last September, and giving the company the capital that it needs to expand into this growth market. We're really excited to be working with Cerberus going forward, and very excited as a leadership team to now be able to focus on delivering and creating stakeholder value as we look at the fundamentals of launching the Z3 and bringing and completing the SAT, the Site Acceptance Test, for our first state-of-the-art manufacturing line that we're installing in Turtle Creek.
This has been a process that's been going on, really over the last year, and has really taken on a lot of, a lot of focus since we announced our conditional commitment, in September last year. Before I turn over to Nathan, I'd also like to thank Nathan. You know, he has been the quarterback behind bringing this transaction to closure here today. We talked to numerous counterparties, and really what, what got us excited and gets us excited is the fact that we have a strategic partner now that will, again, allow our company to play bigger out in a growing and a fast-growing marketplace, and allow us to really take the company to the inherent potential that we know the technology has. With that, I'll turn it over to Nathan and look forward to having Q&A here when we're done. Thanks.
Thanks, Joe, and thank you all for joining us this morning. We couldn't be more thrilled to be able to announce our strategic partnership with Cerberus today. As Joe mentioned, we are excited to finally have the capital framework in place to support our growth plans under Project AMAZE and execute on our roadmap to profitability. We have been pursuing a comprehensive capital plan since I joined the company last year and have been working meticulously to optimize our financial structure to support our growth initiatives. As you know, we've evaluated numerous capital alternatives to fund our growth and strengthen our capital position, and following an extensive process, we believe partnering with the Cerberus Supply Chain and Strategic Opportunities Platform is the best alternative for the business.
We are confident this structure supports our growth aspirations and meets some key conditions of our conditional commitment from the Department of Energy. This investment comes at a pivotal moment in our growth trajectory, and through this partnership, we will be able to leverage operational expertise, software capabilities, and technology resources through Cerberus's network to further strengthen and diversify our supply chain, advance our expansion efforts, and upgrade our overall operational capabilities.... We have already begun working with some of the connections made through Cerberus to enhance product design and further drive down product costs. As we've been going through the due diligence process these last five or six months, the company has been improving in numerous areas of the business. The diligence process has been very thorough, but immensely rewarding, as it has provided us with the opportunity to scrutinize our operations, processes, and financials with a fine-tooth comb.
We believe Cerberus will be a great partner for us as we look at future opportunities, and we look forward to working closely with their network to drive value and capitalize on strategic initiatives that will benefit our company and our stakeholders. Now, getting into some terms of the deal. This investment is a combination of debt and equity, with the debt being structured as a $210 million senior secured delayed draw term loan that is partially dependent on achieving operational milestones, along with a $105 million revolver that can be drawn upon, if required, at Cerberus's discretion. Each of the operational milestones are aligned with certain areas of our strategic outlook and include both operational and financial metrics over the next 10 months.
The loan has a 5-year maturity and bears an initial interest rate of 15%, which is very comparable to what we were paying under the Atlas loan. The revolver was added to the overall structure to provide added flexibility, should it be needed, around the DOE loan closing. In connection with this investment, we were able to terminate and refinance our existing $100 million senior secured loan with Atlas on very favorable terms. With Cerberus's support, we have extinguished $100 million in debt for $27 million, of which $20 million has been paid, with the release of approximately $12 million in long-term restricted cash and $8 million of cash paid at closing. The remaining $7 million will be payable over the next 12 months.
While the Atlas loan was a financial instrument designed to bridge us to longer-term strategic capital, we are very excited to now have Cerberus working alongside us as a strategic partner to deliver on the long-term vision of the business. As a part of this strategic investment, assuming the delayed draw term loan is fully funded, Cerberus will receive penny warrants and non-voting convertible preferred stock equivalent to 33%, which could increase up to 49% of the outstanding equity on a fully diluted basis, depending on the achievement of operational milestones. I would highlight that we have the ability to earn back any incremental equity that Cerberus may be entitled to on a particular milestone by achieving subsequent milestones. So now that we have the necessary capital to grow, our focus is on execution.
At closing, we received initial funding of $75 million, and Cerberus was issued penny warrants and non-voting, redeemable, non-convertible preferred stock, representing an economic interest of approximately 19.9% of our common stock in connection with this initial funding. Before we proceed to Q&A, I want to express my gratitude to everyone involved in this significant endeavor. The successful completion of this deal is a testament to our collective efforts, dedication, and commitment as we remain focused on the cost out milestones and our path to profitability, as previously outlined at our December strategic outlook call. With that, I want to thank everyone for joining us this morning, and before we conclude, I invite any questions or comments from our participants today. So, look, we—I know this was on a call that was on short notice.
Just want to thank everybody for participating here this morning. You know, just to wrap up here, you know, we're right back, laser focused on SAT here as we close out Q2. You know, as Nathan spoke about, you know, we've been working through this process and continue to work through the process with the LPO for the Department of Energy loan, and we're right back now focused 100% on that now that we've been able to secure this partnership and funding from Cerberus. The team here is very excited to be able to have the runway now to focus on truly executing to the plan that we laid out back in December.
I think it gives us the opportunity now to focus on really building the company and to really, when you think about this, the combination of the funding from Cerberus, along with potentially closing the DOE loan, given what we're seeing happening in the marketplace and the acceleration around energy demand, is gonna help us scale the company. So we as a team are very focused on delivering the results that we laid out and really partnering with Cerberus to take Eos to the position it belongs in the long-duration energy storage market. And we're very excited and thankful to them for picking us, because they also went through an extensive due diligence process, looking at multiple companies, as they've gone through to make a decision on where to place their bet for the future.
We're proud to be that bet and to partner with them as we move forward. So thanks, everyone, and we're gonna get back to work here in Turtle Creek, and everybody, have a great day.
This concludes today's conference call. Thank you for participating. You may now disconnect.