Lucid Group Aims To Raise US$1.75 Billion From Notes Offering

Days after receiving a subpoena related to an investigation by the Securities and Exchange Commission, Lucid Group (Nasdaq: LCID) announced on Wednesday a planned private notes offering. The electric vehicle maker intends to offer convertible senior notes due 2026 with a total principal amount of US$1.75 billion.

While the notes’ interest rate is yet to be announced, the firm relayed that this will be payable to the holders semi-annually in arrears. The notes are convertible to cash, company shares, or both at the company’s discretion and timing preference.

The carmaker also relayed that it intends to use the net proceeds on financing its “eligible green investments.” But pending that allocation, the proceeds are intended for business expansion and general corporate purposes, which includes “supporting other potential growth opportunities.”

The initial purchasers will also be granted the option to purchase an additional US$262.5 million worth of notes within 13 days from the first issuance of the notes.

In Q3 2021, the company recorded quarterly revenue of US$0.2 million and operating loss of US$497.1 million.

Lucid Group last traded at US$36.52 on the Nasdaq.

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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