Lucid Group, Inc. announced the pricing of $875,000,000 aggregate principal amount of 7.00% convertible senior notes due 2031.
The offering is in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.
The notes will be senior, unsecured obligations and will accrue interest at a rate of 7.00% per annum.
Notes Details
The notes will mature on November 1, 2031, with an initial conversion rate of 48.0475 shares per $1,000 principal amount at an initial conversion price of approximately $20.81 per share.
Redemption Options
Lucid has the option to redeem the notes in whole or in part starting from November 6, 2028, under certain conditions including share price and liquidity requirements.
Net Proceeds Allocation
Approximately $863.5 million (or $962.4 million if the option is fully exercised) will be the net proceeds, with $752.2 million allocated for repurchases of existing 2026 notes.
- The offering will provide Lucid with significant funds to repurchase existing debt and support general corporate purposes.
- The conversion features and redemption options provide flexibility to both Lucid and investors, enhancing the attractiveness of the notes.
Lucid's successful pricing of the convertible senior notes offering indicates investor confidence in the company's future prospects and financial stability. The strategic allocation of net proceeds demonstrates a proactive approach to managing existing debt obligations and enhancing liquidity.