Electric vehicle maker Rivian Automotive plans to raise USD1.5 billion in private placement of convertible bonds due 2030.
According to GlobalData’s deals database, Rivian also expects to grant the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date the notes are first issued, up to an additional $225,000,000 principal amount of notes.
The interest rate, initial conversion rate and other terms of the notes will be determined at the pricing of the offering.
The notes will be senior, unsecured obligations of Rivian, will accrue interest payable semi-annually in arrears and will mature on October 15, 2030, unless earlier repurchased, redeemed or converted. Noteholders will have the right to convert their notes in certain circumstances and during specified periods. Rivian will settle conversions by paying or delivering, as applicable, cash, shares of its Class A common stock (the “common stock”) or a combination of cash and shares of its common stock, at Rivian’s election.
Rivian intends to allocate an amount equal to the net proceeds from the offering to finance, refinance, make direct investments in, in whole or in part, one or more new or recently completed (within the 24 months prior to the issue date of the notes), current and/or future eligible projects (such projects, “Eligible Green Projects”), in alignment with the guidelines of the Green Bond Principles, 2021.
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Strong demand, a production ramp-up and a clear path to profitability next year have helped Rivian stand apart from peers that have struggled with tough competition, output hurdles and the effects of Tesla‘s EV price war.
Tesla said it delivered a record number of vehicles in Q2 2023 (466,140 units), after cutting prices to increase sales.
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