Lucid Group, Inc. Announces Closing of Private Offering of $1.1 Billion of Convertible Senior Notes Due 2030
Lucid Group (LCID) has successfully closed a $1.1 billion convertible senior notes offering due 2030, including the full exercise of the initial purchasers' $100 million option. The company simultaneously repurchased approximately $1.05 billion of its existing 1.25% convertible notes due 2026.
The new offering features capped call hedges that increase the effective conversion price to $4.80 per share, representing a 100% premium over the last reported stock price of $2.40. The net proceeds of approximately $1.08 billion were allocated as follows: $118.3 million for capped call transactions, $935.6 million for existing notes repurchase, with the remainder designated for general corporate purposes.
The deal structure, supported by PIF through a prepaid forward share purchase, aims to minimize dilution impact on existing shareholders. Lucid maintains flexibility to settle future conversions in cash, stock, or a combination thereof.
Lucid Group (LCID) ha concluso con successo un'offerta di note senior convertibili da 1,1 miliardi di dollari con scadenza nel 2030, inclusa l'esercitazione completa dell'opzione da 100 milioni di dollari degli acquirenti iniziali. L'azienda ha contemporaneamente riacquistato circa 1,05 miliardi di dollari delle sue note convertibili esistenti con un tasso dell'1,25% in scadenza nel 2026.
La nuova offerta prevede coperture di call capped che aumentano il prezzo di conversione effettivo a 4,80 dollari per azione, rappresentando un premio del 100% rispetto all'ultimo prezzo di borsa riportato di 2,40 dollari. I proventi netti di circa 1,08 miliardi di dollari sono stati allocati come segue: 118,3 milioni di dollari per transazioni di call capped, 935,6 milioni di dollari per il riacquisto di note esistenti, mentre il resto è destinato a scopi aziendali generali.
La struttura dell'affare, supportata da PIF attraverso un acquisto anticipato di azioni, mira a ridurre al minimo l'impatto della diluizione sugli azionisti esistenti. Lucid mantiene la flessibilità di liquidare future conversioni in contante, azioni o una combinazione di entrambi.
Lucid Group (LCID) ha cerrado con éxito una oferta de notas senior convertibles de 1.1 mil millones de dólares con vencimiento en 2030, incluyendo el ejercicio completo de la opción de 100 millones de dólares de los compradores iniciales. La compañía también recompró aproximadamente 1.05 mil millones de dólares de sus notas convertibles existentes al 1.25% que vencen en 2026.
La nueva oferta incluye coberturas de call capped que aumentan el precio de conversión efectivo a 4.80 dólares por acción, lo que representa una prima del 100% sobre el último precio de acción reportado de 2.40 dólares. Los ingresos netos de aproximadamente 1.08 mil millones de dólares se asignaron de la siguiente manera: 118.3 millones de dólares para transacciones de call capped, 935.6 millones de dólares para la recompra de notas existentes, y el resto destinado a fines corporativos generales.
La estructura del acuerdo, respaldada por PIF a través de una compra anticipada de acciones, tiene como objetivo minimizar el impacto de la dilución en los accionistas existentes. Lucid mantiene la flexibilidad para liquidar futuras conversiones en efectivo, acciones o una combinación de ambas.
루시드 그룹 (LCID)는 2030년 만기 11억 달러 규모의 전환 가능한 선순위 노트 제공를 성공적으로 마감했으며, 초기 구매자의 1억 달러 옵션을 전액 행사했습니다. 회사는 동시에 2026년 만기 1.25%의 기존 전환 노트 약 10억 5천만 달러를 재매입했습니다.
새로운 제공은 효과적인 전환 가격을 4.80달러로 증가시키는 capped call 헤지를 특징으로 하며, 이는 마지막 보고된 주가인 2.40달러에 비해 100%의 프리미엄을 나타냅니다. 약 10억 8천만 달러의 순수익은 다음과 같이 배분되었습니다: capped call 거래에 1억 1천8백30만 달러, 기존 노트 재매입에 9억 3천5백60만 달러, 나머지는 일반 기업 용도로 지정되었습니다.
PIF의 선불 선주문을 통한 거래 구조는 기존 주주에 대한 희석 영향을 최소화하는 것을 목표로 합니다. 루시드는 향후 전환을 현금, 주식 또는 둘의 조합으로 정산할 수 있는 유연성을 유지합니다.
Lucid Group (LCID) a réussi à clôturer une offre de 1,1 milliard de dollars de billets convertibles senior arrivant à échéance en 2030, y compris l'exercice complet de l'option de 100 millions de dollars des acheteurs initiaux. L'entreprise a simultanément racheté environ 1,05 milliard de dollars de ses billets convertibles existants à 1,25% arrivant à échéance en 2026.
La nouvelle offre comprend des couvertures de call capped qui augmentent le prix de conversion effectif à 4,80 dollars par action, représentant une prime de 100% par rapport au dernier prix de l'action signalé de 2,40 dollars. Les produits nets d'environ 1,08 milliard de dollars ont été alloués comme suit : 118,3 millions de dollars pour les transactions de call capped, 935,6 millions de dollars pour le rachat de billets existants, le reste étant destiné à des fins d'entreprise générales.
La structure de l'accord, soutenue par PIF par le biais d'un achat d'actions prépayé, vise à minimiser l'impact de la dilution sur les actionnaires existants. Lucid conserve la flexibilité de régler les futures conversions en espèces, en actions ou une combinaison des deux.
Lucid Group (LCID) hat erfolgreich ein Angebot von 1,1 Milliarden Dollar an wandelbaren vorrangigen Anleihen mit Fälligkeit im Jahr 2030 abgeschlossen, einschließlich der vollständigen Ausübung der 100 Millionen Dollar-Option der ursprünglichen Käufer. Das Unternehmen hat gleichzeitig etwa 1,05 Milliarden Dollar seiner bestehenden 1,25%-Wandelanleihen mit Fälligkeit 2026 zurückgekauft.
Das neue Angebot umfasst capped call-Hedges, die den effektiven Umwandlungspreis auf 4,80 Dollar pro Aktie erhöhen, was eine Prämie von 100% gegenüber dem zuletzt gemeldeten Aktienkurs von 2,40 Dollar darstellt. Die Nettoerlöse von etwa 1,08 Milliarden Dollar wurden wie folgt verwendet: 118,3 Millionen Dollar für capped call-Transaktionen, 935,6 Millionen Dollar für den Rückkauf bestehender Anleihen, der Rest ist für allgemeine Unternehmenszwecke vorgesehen.
Die Struktur des Deals, unterstützt von PIF durch einen vorab bezahlten Aktienkauf, zielt darauf ab, die Verwässerungswirkung auf bestehende Aktionäre zu minimieren. Lucid behält sich die Flexibilität vor, zukünftige Umwandlungen in bar, Aktien oder einer Kombination aus beidem abzuwickeln.
- Strategic refinancing extends debt maturity from 2026 to 2030
- Capped call structure provides 100% premium protection against dilution
- PIF's continued strategic support through prepaid forward share purchase
- Flexibility in settlement options (cash, stock, or combination) for future conversions
- Company taking on $1.1B in new debt obligations
- Potential future dilution if stock price exceeds $4.80 conversion price
- Significant cash outlay ($118.3M) required for capped call hedges
Insights
Lucid's
The implementation of capped call hedges is particularly noteworthy. By investing
The continued support from PIF serves as a crucial strategic differentiator, as referenced by CFO Taoufiq Boussaid. This backing provides Lucid with financial flexibility that many EV manufacturers lack in today's capital-intensive market. The optionality to settle conversions in cash, stock, or a combination further enhances their flexibility in managing future obligations.
This transaction effectively refinances existing debt while extending their runway, giving management additional time to execute their production and sales strategies. While this financing doesn't directly solve operational challenges, it significantly improves Lucid's financial position by addressing near-term debt obligations and providing breathing room for their growth initiatives.
New issue structured efficiently with PIF support from prepaid forward share purchase, 5-year maturity, and capped
call overlay resulting in effective conversion price of
"We are delighted to have completed this offering, which better positions Lucid for future growth and success, while strengthening our already close partnership with the PIF, and minimizing any effect to existing shareholders," said Taoufiq Boussaid, Chief Financial Officer at Lucid. "The support of the PIF continues to be one of Lucid's key strategic differentiators as we work together toward a more sustainable future."
In connection with the offering, Lucid purchased capped call hedges to increase the effective conversion price of the notes to
The net proceeds from the offering are approximately
Lucid has the optionality to settle any conversions in cash, shares of its Class A common stock, or a combination of cash and shares to further influence potential dilution or cash obligations upon any future conversion of the notes.
About Lucid Group
Lucid (NASDAQ: LCID) is a Silicon Valley-based technology company focused on creating the most advanced EVs in the world. The award-winning Lucid Air and new Lucid Gravity deliver best-in-class performance, sophisticated design, expansive interior space and unrivaled energy efficiency. Lucid assembles both vehicles in its state-of-the-art, vertically integrated factory in
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Forward-Looking Statements
This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "shall," "expect," "anticipate," "believe," "seek," "target," "continue," "could," "may," "might," "possible," "potential," "predict" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, the anticipated effects of entering into the capped call transactions. Actual events and circumstances may differ from these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties. Among those risks and uncertainties are market conditions and risks relating to Lucid's business, including those factors discussed under the heading "Risk Factors" in Part I, Item 1A of Lucid's Annual Report on Form 10-K for the year ended December 31, 2024, as well as in other documents Lucid has filed or will file with the Securities and Exchange Commission. If any of these risks materialize or Lucid's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Lucid currently does not know or that Lucid currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Lucid cannot provide any assurances regarding its ability to effectively apply the net proceeds as described above. In addition, forward-looking statements reflect Lucid's expectations, plans or forecasts of future events and views as of the date of this communication. Lucid anticipates that subsequent events and developments will cause Lucid's assessments to change. However, while Lucid may elect to update these forward-looking statements at some point in the future, Lucid specifically disclaims any obligation to do so. Accordingly, undue reliance should not be placed upon the forward-looking statements.
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SOURCE Lucid Group
FAQ
What is the size and purpose of Lucid's (LCID) new convertible notes offering in 2025?
How does the capped call structure protect LCID shareholders from dilution?
How much of LCID's 2026 convertible notes were repurchased in this transaction?
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