Lucid Group, Inc. (Nasdaq: LCID) announced today that it has priced its offering of $1,000,000,000 aggregate principal amount of 5.00% convertible senior notes due 2030 in a private offering to qualified institutional buyers. The issuance and sale of the notes are expected to settle on or about April 8, 2025, subject to customary closing conditions. Lucid has also granted the initial purchasers of the notes an option to purchase up to an additional $100,000,000 principal amount of notes.
The notes will be senior, unsecured obligations of Lucid and will accrue interest at a rate of 5.00% per annum. They will mature on April 1, 2030, with certain conversion rights for noteholders before and after January 1, 2030. The initial conversion rate is 333.3333 shares of common stock per $1,000 principal amount of notes, with an initial conversion price of approximately $3.00 per share of common stock. The conversion rate and price are subject to adjustment based on certain events.
The notes will be redeemable at Lucid’s option, in whole or in part, from April 6, 2028, under certain conditions. Additionally, holders may require Lucid to repurchase their notes for cash if a fundamental change occurs.
The net proceeds from the offering, estimated to be approximately $983.6 million (or $1,082.2 million if the option to purchase additional notes is exercised), will be used to fund repurchases of existing notes and for capped call transactions. The capped call transactions are intended to reduce potential dilution to Lucid’s common stock upon conversion of the notes.
Overall, Lucid’s offering of convertible senior notes represents a strategic move to strengthen its financial position and provide flexibility for future growth opportunities. Lucid may enter into additional capped call transactions with the capped call counterparties if the initial purchasers exercise their option to purchase additional notes.
Concurrently with the pricing of the notes, Lucid engaged in separate transactions to repurchase a portion of the 2026 notes from certain holders for cash.
In connection with the pricing of the notes, Ayar, a subsidiary of the Public Investment Fund of Saudi Arabia, entered into a prepaid forward transaction with a forward counterparty to purchase approximately $430.0 million of Lucid’s common stock. This transaction is intended to facilitate derivative transactions between the forward counterparty and investors in the notes.
Further details about these transactions will be available in the Current Report on Form 8-K that Lucid plans to file with the Securities and Exchange Commission around April 8, 2025.
The offer and sale of the notes and any shares of Lucid’s common stock have not been registered and can only be offered or sold in compliance with exemptions from registration requirements.
Lucid Group, a technology company focused on advanced EVs, assembles vehicles in Arizona and is committed to advancing EV technology.
For investor relations inquiries, contact [email protected], and for media inquiries, contact [email protected]
This communication contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ from these statements, and Lucid disclaims any obligation to update them. Title: The Ultimate Guide to Incorporating Keywords for SEO Success
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