Lucid Group, Inc. Announces Public Investment Fund Commitment of $1.5 Billion
Lucid Group (NASDAQ: LCID) has secured a significant financial commitment from its majority stockholder, Ayar Third Investment Company, an affiliate of the Public Investment Fund (PIF). The commitment consists of two parts: a $750 million convertible preferred stock purchase via private placement and a $750 million unsecured delayed draw term loan facility.
The convertible preferred stock sale will be conducted in reliance on the exemption from registration provided in Section 4(a)(2) of the Securities Act of 1933. Lucid plans to use the proceeds from both the private placement and any future borrowings under the term loan facility for general corporate purposes, including capital expenditures and working capital. This substantial financial backing demonstrates continued support from Lucid's major investor and provides the company with additional liquidity to fund its operations and growth initiatives.
Lucid Group (NASDAQ: LCID) ha ottenuto un significativo impegno finanziario dal suo azionista di maggioranza, Ayar Third Investment Company, un'affiliata del Public Investment Fund (PIF). L'impegno consiste in due parti: un
La vendita delle azioni privilegiate convertibili sarà effettuata facendo affidamento sull'esenzione dalla registrazione prevista nella Sezione 4(a)(2) della Securities Act del 1933. Lucid prevede di utilizzare i proventi sia del collocamento privato che di eventuali futuri prestiti attraverso la linea di prestito per scopi aziendali generali, compresi gli investimenti in capitale e il capitale circolante. Questo sostanziale sostegno finanziario dimostra il continuo supporto del principale investitore di Lucid e fornisce all'azienda ulteriore liquidità per finanziare le sue operazioni e le iniziative di crescita.
Lucid Group (NASDAQ: LCID) ha conseguido un compromiso financiero significativo de su accionista mayoritario, Ayar Third Investment Company, una afiliada del Public Investment Fund (PIF). El compromiso consiste en dos partes: una compra de acciones preferentes convertibles por $750 millones a través de una colocación privada y una facilidad de préstamo a plazo sin garantía por $750 millones.
La venta de acciones preferentes convertibles se llevará a cabo basándose en la exención de registro provista en la Sección 4(a)(2) de la Ley de Valores de 1933. Lucid planea utilizar los ingresos tanto de la colocación privada como de futuros préstamos bajo la facilidad de préstamo para fines corporativos generales, incluidos gastos de capital y capital de trabajo. Este importante respaldo financiero demuestra el continuo apoyo del principal inversor de Lucid y proporciona a la empresa liquidez adicional para financiar sus operaciones e iniciativas de crecimiento.
루시드 그룹 (NASDAQ: LCID)는 다수 주주인 아야르 제3 투자회사로부터 중요한 재정 지원을 확보했습니다. 이 회사는 공공 투자 기금(PIF)의 계열사입니다. 이 지원은 두 부분으로 나뉩니다: 7억 5천만 달러 규모의 전환 우선주 매입과 7억 5천만 달러 규모의 무담보 지연 인출 약정 대출입니다.
전환 우선주 판매는 1933년 증권법 제4(a)(2)조에서 정한 등록 면제를 근거로 진행됩니다. 루시드는 두 가지 모두에서 발생한 수익을 일반 기업 용도로, 자본 지출 및 운영 자본을 포함하여 사용할 계획입니다. 이 대규모 재정 지원은 루시드의 주요 투자자로부터의 지속적인 지원을 보여주며 회사에 운영 및 성장 계획을 위한 추가 유동성을 제공합니다.
Lucid Group (NASDAQ: LCID) a obtenu un engagement financier significatif de son actionnaire majoritaire, Ayar Third Investment Company, une filiale du Public Investment Fund (PIF). Cet engagement se compose de deux parties : un achat d'actions privilégiées convertibles de 750 millions de dollars via un placement privé et une facilité de prêt à terme non garanti de 750 millions de dollars.
La vente d'actions privilégiées convertibles sera réalisée en s'appuyant sur l'exemption d'enregistrement prévue à la section 4(a)(2) de la Securities Act de 1933. Lucid prévoit d'utiliser les produits du placement privé et de tout emprunt futur dans le cadre de la facilité de prêt pour des fins générales d'entreprise, y compris les dépenses d'investissement et le fonds de roulement. Ce soutien financier substantiel démontre le soutien continu du principal investisseur de Lucid et fournit à l'entreprise une liquidité supplémentaire pour financer ses opérations et ses initiatives de croissance.
Lucid Group (NASDAQ: LCID) hat sich ein erhebliches finanzielles Engagement von seinem Mehrheitsaktionär, der Ayar Third Investment Company, einer Tochtergesellschaft des Public Investment Fund (PIF), gesichert. Das Engagement besteht aus zwei Teilen: einem Kauf von wandelbaren Vorzugsaktien über 750 Millionen Dollar durch eine Privatplatzierung und einer unbesicherten, verzögerten Kreditfazilität über 750 Millionen Dollar.
Der Verkauf der wandelbaren Vorzugsaktien erfolgt unter Berufung auf die Befreiung von der Registrierung gemäß Section 4(a)(2) des Securities Act von 1933. Lucid plant, die Einnahmen aus sowohl der Privatplatzierung als auch zukünftigen Darlehen aus der Kreditfazilität für allgemeine Unternehmenszwecke, einschließlich Investitionen in Kapital und Betriebskapital, zu verwenden. Diese erhebliche finanzielle Unterstützung zeigt die anhaltende Unterstützung des großen Investors von Lucid und bietet dem Unternehmen zusätzliche Liquidität zur Finanzierung seiner Betriebe und Wachstumsinitiativen.
- Secured $1.5 billion in total financial commitment from major stockholder
- $750 million convertible preferred stock purchase via private placement
- $750 million unsecured delayed draw term loan facility available
- Strengthened liquidity position for general corporate purposes
- Potential dilution of existing shareholders due to convertible preferred stock issuance
- Increased debt obligation if the company draws from the term loan facility
Insights
This $1.5 billion investment from PIF is a significant boost for Lucid Group, providing important liquidity to support operations and growth. The structure of the deal is noteworthy:
$750 million convertible preferred stock offers flexibility for future equity conversion.$750 million delayed draw term loan provides additional financial cushion.
This cash injection strengthens Lucid's balance sheet, potentially extending its runway amidst challenging market conditions for EV startups. However, it's important to note the dilutive effect of the convertible preferred stock on existing shareholders. The terms of conversion and interest rates will be critical in assessing the long-term impact on Lucid's capital structure and profitability.
This substantial backing from PIF, Lucid's majority shareholder, sends a strong signal of confidence to the market. It's particularly significant given the current challenging environment for EV manufacturers, marked by intensifying competition and economic headwinds. The investment could help Lucid:
- Accelerate production ramp-up
- Expand into new markets
- Invest in R&D for future models
However, investors should monitor Lucid's ability to translate this capital into tangible market share gains and production efficiencies. The EV market remains highly competitive and Lucid must demonstrate it can effectively utilize this capital to solidify its position.
This
- Enhance its industry-leading EV powertrain technology
- Invest in advanced manufacturing processes
- Accelerate development of new vehicle platforms
The funds could also support Lucid's efforts in battery technology innovation, important for maintaining its competitive edge in range and performance. However, the key challenge lies in efficient capital allocation. Lucid must balance R&D investments with scaling production to meet market demand, a delicate act in the rapidly evolving EV landscape.
Lucid has not borrowed under the Delayed Draw Term Loan Facility.
The convertible preferred stock sold to Ayar in the private placement will be sold, subject to customary closing conditions, in reliance on the exemption from registration provided in Section 4(a)(2) of the Securities Act of 1933, as amended.
Lucid intends to use the net proceeds from the private placement and any proceeds from the term loan for general corporate purposes, which may include, among other things, capital expenditures and working capital.
About Lucid Group
Lucid is a Silicon Valley-based technology company focused on creating the most advanced EVs in the world. The flagship vehicle, Lucid Air, delivers best-in-class performance and efficiency starting at
* Excludes tax, title, license, options, destination and documentation fees. For U.S. market only.
Investor Relations Contact
investor@lucidmotors.com
Media Contact
media@lucidmotors.com
Trademarks
This communication contains trademarks, service marks, trade names and copyrights of Lucid Group, Inc. and its subsidiaries and other companies, which are the property of their respective owners.
Additional Information
For additional information regarding the transactions, the terms of the Credit Agreement, including with respect to pricing, the convertible preferred stock and a copy of the form of certificate of designations for such convertible preferred stock, please see Lucid's Current Report on Form 8-K filed on August 5, 2024.
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, statements regarding Lucid's expectations related to use of proceeds and the closing of the private placement to Lucid's majority stockholder. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of Lucid's management. These forward-looking statements are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from these forward-looking statements. Many actual events and circumstances are beyond the control of Lucid. These forward-looking statements are subject to a number of risks and uncertainties, including those factors discussed under the heading "Risk Factors" in Part II, Item 1A of Lucid's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, as well as 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. 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. These forward-looking statements should not be relied upon as representing Lucid's assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
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SOURCE Lucid Group
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