Electric automaker Lucid Group, backed by Saudi Arabia’s Public Investment Fund (PIF), has closed its offering of convertible senior notes due in 2030.
The issue, which also allowed initial purchasers to acquire up to an additional $100 million of notes, raised around $1.082 billion.
The bulk of the proceeds, approximately $935.6 million, will go towards repurchasing earlier debt, or around $1.05 billion aggregate principal amount of outstanding 1.25% convertible senior notes due in 2026.
The firm also allocated $118.3 million of the proceeds to cover capped call transactions and will use the remainder for general corporate purposes.
The issue, which was structured with PIF support, featured cap call hedges that doubled the notes’ effective conversion price to $4.80 per share.
“We are delighted to have completed this offering, which better positions Lucid for future growth and success, while strengthening our already close partnership with the PIF, and minimizing any effect to existing shareholders,” said Taoufiq Boussaid, Chief Financial Officer at Lucid.
(Writing by Cleofe Maceda; editing by Seban Scaria)
Seban.scaria@lseg.com
