Lucid Group, Inc. (NASDAQ: LCID) has announced its plans to offer $1,000,000,000 aggregate principal amount of convertible senior notes due 2030 in a private offering. The company also expects to grant the initial purchasers of the notes an option to purchase up to an additional $100,000,000 principal amount of notes.
The notes will be senior, unsecured obligations of Lucid, will accrue interest payable semi-annually in arrears, and will mature on April 1, 2030. Lucid will settle conversions of notes by paying or delivering cash, shares of its class A common stock, or a combination of both, at its election.
The company intends to use the net proceeds of the offering to repurchase a portion of its outstanding 1.25% convertible senior notes due 2026 and pay the cost of capped call transactions. Any remaining net proceeds will be used for general corporate purposes.
In connection with the offering, Lucid expects to enter into privately negotiated capped call transactions to reduce potential dilution to its common stock upon conversion of the notes. Additionally, the company expects to enter into separate and individually negotiated transactions to repurchase a portion of the 2026 notes.
Moreover, Lucid anticipates that Ayar Third Investment Company, a wholly-owned subsidiary of the Public Investment Fund of Saudi Arabia, will enter into a privately negotiated prepaid forward transaction with a forward counterparty, facilitating privately negotiated derivative transactions, including swaps, between the forward counterparty or its affiliates and investors in the notes.
The offer and sale of the notes and any shares of Lucid’s common stock issuable upon conversion of the notes have not been registered under the securities act or any other securities laws.
Lucid Group, Inc. is a Silicon Valley-based technology company focused on creating advanced electric vehicles. The company's award-winning Lucid Air and new Lucid Gravity deliver best-in-class performance, sophisticated design, expansive interior space, and unrivaled energy efficiency. Through its industry-leading technology and innovations, Lucid is advancing the state-of-the-art of EV technology for the benefit of all. The market has reacted to these announcements by moving the company's shares -5.1% to a price of $2.4. For the full picture, make sure to review Lucid's 8-K report.
