Lucid (NASDAQ:LCID) announced on Tuesday that it intends to offer $875M in convertible senior notes due 2031.
The company also expects to allow an additional $100M in notes to the initial purchasers for settlement within a period of 13 days, including the date the notes are first issued.
The company plans to use the net proceeds to repurchase a portion of its outstanding 1.25% convertible senior notes due 2026 and for general corporate purposes post deducting the initial purchasers’ discounts and commissions and its estimated offering expenses.
The notes will be redeemable on or after November 6, 2028, and on or before the 31st scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of the company’s common stock exceeds 130% of the conversion price for a specified period of time and certain liquidity conditions are satisfied.
In relation to the pricing of notes, Ayar Third Investment Company, a subsidiary of the PIF, will enter into a forward transaction in compliance with which Ayar will purchase a number of shares of the company’s common stock with delivery expected nearly to the maturity date for the notes.
