US electric vehicle maker Lucid Motors, which is majority-owned by Saudi Arabia's sovereign wealth fund PIF (Public Investment Fund), has raised $1.1 billion from convertible senior notes to repay existing debt. 

 

Announcing the pricing of its offering of $1 billion aggregate principal amount of 5% convertible senior notes due 2030 in a private offering, Lucid said this offering includes the full exercise of an option that allowed initial purchasers to acquire an additional $100 million in aggregate principal of these notes, marking a pivotal moment for the company as it seeks to strengthen its financial position and support future growth.

 

According to Lucid, the net proceeds from the offering will be $983.6 million (or approximately $1.08 billion if the initial purchasers fully exercise their option to purchase additional notes), after deducting the initial purchasers' discounts and commissions and estimated offering expenses. 

 

Lucid has allocated around $118.3 million of these proceeds to cover the costs associated with the capped call transactions. 

 

The majority of the funds will be used to repurchase about $1.05 billion in aggregate principal of its outstanding 1.25% convertible senior notes due in 2026, stated the Silicon Valley-based EV maker in a statement. 

 

The remaining proceeds will be directed toward general corporate purposes, allowing Lucid to maintain flexibility in its financial strategy, it added.

 

On the new move, Lucid’s Chief Financial Officer Taoufiq Boussaid said: "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."

 

"The ongoing support from the PIF is seen as a strategic advantage for Lucid as it aims to advance its mission of creating a more sustainable future in the automotive industry," he added.-TradeArabia News Service