Lucid Group (LCID) announced the pricing of an $875 million offering of 7.00% convertible senior notes due 2031 in a private sale to institutional investors.
The deal is expected to close around November 17, 2025, subject to standard conditions. The company also gave buyers an option to purchase up to an additional $100 million in notes within 13 days of the initial sale.
The notes will accrue interest at a rate of 7.00% per annum, payable semi-annually, beginning on May 1, 2026. They will mature on November 1, 2031, unless earlier repurchased, redeemed, or converted.
The initial conversion rate is 48.0475 shares of common stock per $1,000 principal amount of notes, representing an initial conversion price of ~$20.81 per share. The initial conversion price represents a premium of ~22.5% over the last reported sale price of Lucid’s common stock on November 11, 2025.
Lucid expects to raise about $863.5 million from the offering, or $962.4 million if buyers fully exercise their option to purchase additional notes. The company plans to use about $752.2 million of the proceeds to repurchase $755.7 million of its outstanding 1.25% convertible notes due 2026, with the rest going toward general corporate purposes.
Source: Press Release