JasonDoiy
Rivian Automotive (NASDAQ:RIVN) plans to refinance its upcoming debt with a new high-yield bond sale, according to Bloomberg. Sources indicate a transaction could launch as early as next week to raise $2 billion to replace upcoming maturities in 2026.
Early pricing discussions are reported to be around the 10% coupon rate level.
Notably, the company said it achieved gross profit of $206 million during Q1 to mark its second consecutive quarter in the green. By hitting the milestone, Rivian (NASDAQ:RIVN) unlocked an expected $1 billion investment from Volkswagen Group (OTCPK:VLKAF) (OTCPK:VWAGY) tied to the formation of their joint venture. The investment is expected to be funded on June 30.
As of March 31, Rivian (NASDAQ:RIVN) had a total cash position of $7.18 billion and total debt of $4.44 billion. The electric vehicle maker is actively working to bolster its balance sheet, including the pending joint venture with Volkswagen Group (OTCPK:VLKAF), which could bring in up to $5.8 billion in additional investment by completion.
Rivian (RIVN) previously tapped the bond market by raising approximately $1.25 billion in bonds back in 2021.