Lucid Group, Inc. Prices $1,000,000,000 Convertible Senior Notes Offering
Lucid Group (LCID) has announced the pricing of $1 billion in convertible senior notes due 2030, with a 5.00% annual interest rate. The notes will be convertible into cash, LCID common stock, or a combination at Lucid's discretion, with an initial conversion rate of 333.3333 shares per $1,000 principal amount, representing a conversion price of approximately $3.00 per share.
The company expects net proceeds of approximately $983.6 million, which will be used primarily to fund repurchases of existing 2026 notes ($935.6 million) and capped call transactions ($107.5 million). The notes will mature on April 1, 2030, unless earlier repurchased, redeemed, or converted.
In connection with the offering, Lucid has entered into capped call transactions to reduce potential dilution, with a cap price of $4.80 per share. Additionally, Ayar Third Investment Company, a subsidiary of Saudi Arabia's Public Investment Fund, has entered into a $430 million prepaid forward transaction for LCID common stock.
Lucid Group (LCID) ha annunciato il prezzo di 1 miliardo di dollari in note senior convertibili con scadenza nel 2030, con un tasso d'interesse annuale del 5,00%. Le note saranno convertibili in contante, azioni ordinarie di LCID, o una combinazione a discrezione di Lucid, con un tasso di conversione iniziale di 333,3333 azioni per ogni 1.000 dollari di valore nominale, corrispondente a un prezzo di conversione di circa 3,00 dollari per azione.
L'azienda prevede proventi netti di circa 983,6 milioni di dollari, che saranno utilizzati principalmente per finanziare il riacquisto delle note esistenti del 2026 (935,6 milioni di dollari) e transazioni di capped call (107,5 milioni di dollari). Le note scadranno il 1 aprile 2030, a meno che non vengano riacquistate, rimborsate o convertite anticipatamente.
In relazione all'offerta, Lucid ha stipulato transazioni di capped call per ridurre la potenziale diluizione, con un prezzo massimo di 4,80 dollari per azione. Inoltre, Ayar Third Investment Company, una sussidiaria del Fondo pubblico di investimento dell'Arabia Saudita, ha stipulato una transazione forward prepagata di 430 milioni di dollari per le azioni ordinarie di LCID.
Lucid Group (LCID) ha anunciado el precio de 1 mil millones de dólares en notas senior convertibles que vencen en 2030, con una tasa de interés anual del 5.00%. Las notas serán convertibles en efectivo, acciones comunes de LCID, o una combinación a discreción de Lucid, con una tasa de conversión inicial de 333.3333 acciones por cada 1,000 dólares de monto principal, lo que representa un precio de conversión de aproximadamente 3.00 dólares por acción.
La compañía espera ingresos netos de aproximadamente 983.6 millones de dólares, que se utilizarán principalmente para financiar la recompra de notas existentes de 2026 (935.6 millones de dólares) y transacciones de capped call (107.5 millones de dólares). Las notas vencerán el 1 de abril de 2030, a menos que sean recompradas, redimidas o convertidas antes.
En relación con la oferta, Lucid ha entrado en transacciones de capped call para reducir la posible dilución, con un precio máximo de 4.80 dólares por acción. Además, Ayar Third Investment Company, una subsidiaria del Fondo de Inversión Pública de Arabia Saudita, ha realizado una transacción forward prepagada de 430 millones de dólares para acciones comunes de LCID.
루시드 그룹 (LCID)는 2030년 만기 convertible senior notes를 10억 달러에 가격을 발표했으며, 연 이자율은 5.00%입니다. 이 노트는 루시드의 재량에 따라 현금, LCID 보통주 또는 이들의 조합으로 전환될 수 있으며, 초기 전환 비율은 1,000달러의 원금에 대해 333.3333주로, 주당 약 3.00달러의 전환 가격을 나타냅니다.
회사는 약 9억 8360만 달러의 순수익을 예상하고 있으며, 이는 주로 기존 2026년 노트의 재매입(9억 3560만 달러)과 capped call 거래(1억 750만 달러)를 자금 지원하는 데 사용될 것입니다. 이 노트는 2030년 4월 1일에 만기가 되며, 조기 매입, 상환 또는 전환되지 않는 한 유효합니다.
제공과 관련하여 루시드는 잠재적인 희석을 줄이기 위해 capped call 거래를 체결했으며, 주당 최대 가격은 4.80달러입니다. 또한, 사우디 아라비아 공공 투자 기금의 자회사인 Ayar Third Investment Company는 LCID 보통주에 대해 4억 3천만 달러의 선불 선도 거래를 체결했습니다.
Lucid Group (LCID) a annoncé le prix de 1 milliard de dollars en obligations convertibles senior arrivant à échéance en 2030, avec un taux d'intérêt annuel de 5,00 %. Les obligations pourront être converties à la discrétion de Lucid en espèces, en actions ordinaires de LCID, ou en une combinaison des deux, avec un taux de conversion initial de 333,3333 actions pour 1 000 dollars de montant principal, représentant un prix de conversion d'environ 3,00 dollars par action.
L'entreprise s'attend à des produits nets d'environ 983,6 millions de dollars, qui seront principalement utilisés pour financer le rachat des obligations existantes de 2026 (935,6 millions de dollars) et les transactions de capped call (107,5 millions de dollars). Les obligations arriveront à échéance le 1er avril 2030, sauf si elles sont rachetées, remboursées ou converties plus tôt.
En lien avec l'offre, Lucid a conclu des transactions de capped call pour réduire la dilution potentielle, avec un prix plafond de 4,80 dollars par action. De plus, Ayar Third Investment Company, une filiale du Fonds d'investissement public d'Arabie Saoudite, a conclu une transaction forward prépayée de 430 millions de dollars pour les actions ordinaires de LCID.
Lucid Group (LCID) hat die Preisgestaltung von 1 Milliarde Dollar für wandelbare vorrangige Anleihen mit Fälligkeit im Jahr 2030 bekannt gegeben, mit einem jährlichen Zinssatz von 5,00%. Die Anleihen können nach Ermessen von Lucid in Bargeld, LCID-Stammaktien oder eine Kombination davon umgewandelt werden, mit einem anfänglichen Umwandlungsverhältnis von 333,3333 Aktien pro 1.000 Dollar Nennbetrag, was einem Umwandlungspreis von etwa 3,00 Dollar pro Aktie entspricht.
Das Unternehmen erwartet Nettomittel in Höhe von etwa 983,6 Millionen Dollar, die hauptsächlich zur Finanzierung des Rückkaufs bestehender Anleihen von 2026 (935,6 Millionen Dollar) und capped call Transaktionen (107,5 Millionen Dollar) verwendet werden. Die Anleihen laufen am 1. April 2030 ab, es sei denn, sie werden zuvor zurückgekauft, eingelöst oder umgewandelt.
Im Zusammenhang mit dem Angebot hat Lucid capped call Transaktionen abgeschlossen, um eine mögliche Verwässerung zu reduzieren, mit einem Höchstpreis von 4,80 Dollar pro Aktie. Darüber hinaus hat die Ayar Third Investment Company, eine Tochtergesellschaft des öffentlichen Investitionsfonds Saudi-Arabiens, eine vorab bezahlte Forward-Transaktion über 430 Millionen Dollar für LCID-Stammaktien abgeschlossen.
- Secured $1 billion in new financing through convertible notes
- Implemented capped call transactions to minimize potential share dilution
- Received $430 million commitment from Saudi PIF subsidiary for stock purchase
- Taking on significant new debt with 5% interest rate
- Potential future dilution if notes are converted to shares
- Using majority of proceeds to refinance existing debt rather than operations
Insights
Lucid's
The initial conversion price of
The concurrent
This refinancing reveals Lucid's financial priorities: trading higher interest costs for extended runway. By restructuring nearly all of its 2026 notes to mature in 2030, management has secured critical time to address operational challenges without immediate debt repayment pressure. The pricing details are revealing - the
The structure of the transaction demonstrates sophisticated financial engineering. The capped call overlay protects against dilution up to
For investors, this transaction is neutral overall. The extended maturity provides significant operational flexibility, but comes at the cost of higher interest payments (
The Notes
The notes will be senior, unsecured obligations of Lucid and will accrue interest at a rate of
The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Lucid's option at any time, and from time to time, on or after April 6, 2028 and on or before the 31st scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Lucid's common stock exceeds
If a "fundamental change" (as defined in the indenture for the notes) occurs, then, subject to limited exceptions, holders may require Lucid to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.
Lucid estimates that the net proceeds from the offering will be approximately
Capped Call Transactions
In connection with the pricing of the notes, Lucid has entered into privately negotiated capped call transactions with certain of the initial purchasers of the notes or their respective affiliates and certain other financial institutions. The capped call transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the notes, the number of shares of Lucid's common stock that initially underlie the notes. The cap price of the capped call transactions is initially
Repurchases of Outstanding 2026 Notes
Concurrently with the pricing of the notes, Lucid entered into one or more separate and individually negotiated transactions with certain holders of the 2026 notes to repurchase for cash a portion of the 2026 notes on terms negotiated with each such holder.
Ayar Prepaid Forward Transaction
In connection with the pricing of the notes, Ayar Third Investment Company ("Ayar"), a wholly-owned subsidiary of the Public Investment Fund of
The prepaid forward transaction is generally intended to facilitate privately negotiated derivative transactions, including swaps, between the forward counterparty or its affiliates and investors in the notes relating to Lucid's common stock by which investors in the notes will hedge their investments in the notes. Ayar's entry into the prepaid forward transaction with the forward counterparty and the entry by the forward counterparty into derivative transactions in respect of Lucid's common stock with the investors of the notes could have the effect of increasing (or reducing the size of any decrease in) the market price of Lucid's common stock concurrently with, or shortly after, the pricing of the notes and effectively raising the initial conversion price of the notes.
Additional information about the transactions described in this press release can be found in the Current Report on Form 8-K that Lucid intends to file with the Securities and Exchange Commission on or about April 8, 2025.
The offer and sale of the notes and any shares of Lucid's common stock issuable upon conversion of the notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any shares of Lucid's common stock issuable upon conversion of the notes, nor will there be any sale of the notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.
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, statements regarding the completion of the offering, the expected amount and intended use of the net proceeds and 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, the satisfaction of the closing conditions related to the offering 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 may not consummate the offering described in this press release and, if the offering is consummated, 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