Rivian Automotive, Inc. has announced the pricing of its private offering of $1.25 billion aggregate principal amount of 10.000% senior secured green notes due 2031. The company plans to use the net proceeds from this offering, along with cash on hand, to redeem in full the $1.25 billion aggregate principal amount of its outstanding floating rate senior secured notes due 2026 and pay related fees and expenses.
The closing of the notes is expected to occur on June 12, 2025, subject to customary closing conditions. The notes are expected to be guaranteed by each of the company’s subsidiaries that also guarantee the co-issuers’ senior secured asset-based revolving credit facility.
Rivian is an American automotive manufacturer that develops and builds electric vehicles, as well as software and services that address the entire lifecycle of the vehicle. The company's goal is to accelerate the global transition to zero-emission transportation and energy. Rivian vehicles are built in the United States and are sold directly to consumer and commercial customers.
In terms of financial metrics, the company is refinancing its outstanding senior secured notes due 2026 with the newly priced senior secured green notes due 2031. This move indicates a strategic effort to manage its debt structure and potentially benefit from the lower interest rate on the new notes. However, specific changes in financial metrics such as interest expense and debt levels would provide a clearer picture of the impact of this refinancing on the company's financial position. As a result of these announcements, the company's shares have moved -2.04% on the market, and are now trading at a price of $13.91. Check out the company's full 8-K submission here.
