FF Top Holding LLC and Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) Executed a Term Sheet for Up To $600 Million Investment

Rhea-AI Summary

FF Top Holding LLC, a significant shareholder of Faraday Future Intelligent Electric (FFIE), announced a non-binding term sheet for a proposed convertible term loan facility. This facility may offer convertible notes up to $600 million. The financing will be divided into two tranches of $300 million each. FF Top has received interest from two financial investors but has not confirmed full participation. FF Top plans to provide backing for the Potential Lead Investor by pledging a portion of its shares to ensure downside protection.

Positive

• Potential for up to $600 million in financing, which could strengthen FFIE's financial position.
• Interest from two financial investors indicates market confidence in FFIE.

Negative

• No assurance of full investment participation from interested parties.
• FF Top does not plan to purchase any Notes, which could limit their investment incentives.

LOS ANGELES, Aug. 2, 2022 /PRNewswire/ -- FF Top Holding LLC ("FF Top"), a major shareholder of Faraday Future Intelligent Electric Inc.("FF", FFIE") (NASDAQ: FFIE), and FFIE executed a non-binding term sheet (the "Term Sheet") for a proposed convertible term loan facility of FFIE on August 1, consisting of potential senior secured convertible notes ("Notes") in a potential principal amount of up to $600,000,000 (the "Proposed Financing").

The Term Sheet contemplates that several financial investors, to be identified by FF Top but that are not affiliates of FF Top (the "Potential Lead Investor") would participate in the Proposed Financing through a new or existing investment vehicle in a principal amount of at least $100 million, and that additional potential investors, to be identified by the Potential lead Investor, FF Top and FFIE (the "Potential Other Investors" and collectively with the Potential Lead Investor, the "Potential Investors" or the "Potential Lenders"), would further participate in the Proposed Financing for additional principal amounts to be determined. The facility will include two tranches -- each up to $300 million. First tranche note is planned to be funded at closing of the transaction, and investors will have the exclusive option to purchase the second tranche note for a certain period of time after closing.

FF Top has received non-binding indications of interest from two financial investors that may invest via the Potential Lead Investor and is in discussions with the Potential Other Investors; however, there can be no assurance that all or any of such persons will ultimately determine to participate in the Proposed Financing, and as of the date hereof, potential investors have not been identified for the entirety of the $600,000,000 principal amount.

FF Top does not currently expect to purchase any Notes for its own account, and does not anticipate having any control over or investment in the Potential Lead Investor.  FF Top does, however, anticipate providing reasonable downside protection to the Potential Lead Investor by pledging a to-be-determined portion of its shares of Common Stock to the Potential Lead Investor in support of the Notes investment contemplated to be made through the Potential Lead Investor, and also sharing with the Potential Lead Investor in any appreciation in the Potential Lead Investor's investment pursuant to the Proposed Financing. 

A copy of the non-binding term sheet has been filed with the SEC as an exhibit to FF Top's Schedule 13D with respect to its investment in FFIE.

Media Contact
info@ffglobalpartners.com

 

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SOURCE FF Top Holding LLC

FAQ

What is the proposed financing amount for FFIE?

The proposed financing amount for FFIE is up to $600 million.

Who is involved in the proposed convertible term loan facility for FFIE?

FF Top Holding LLC and several unidentified financial investors are involved in the proposed facility.

What are the details of the financing timeline for FFIE?

The financing will be structured in two tranches, with the first tranche planned to be funded at closing.

What actions is FF Top taking to support potential investors?

FF Top plans to pledge a portion of its shares to provide downside protection for the Potential Lead Investor.

When was the term sheet executed for FFIE's financing?

The term sheet for the proposed financing was executed on August 1, 2022.