Rivian Upsizes and Extends Credit Facility

Rhea-AI Summary

Rivian Automotive, Inc. (NASDAQ: RIVN) has announced an Amended and Restated asset-based revolving Credit Agreement with JPMorgan Chase Bank, doubling its undrawn revolving commitments to $1.5 billion. This agreement also increases the letter of credit sublimit from $500 million to $1.0 billion and extends the maturity date to April 19, 2028. The borrowing base has been amended to allow for a broader range of asset eligibility. CFO Claire McDonough noted that these amendments bolster Rivian's balance sheet and support business scaling. The agreement permits additional revolving commitments up to $2.0 billion, enhancing Rivian's capital flexibility as it continues to develop electric vehicles and related services.

Positive

• Doubling undrawn revolving commitments to $1.5 billion.
• Increasing letter of credit sublimit from $500 million to $1.0 billion.
• Extending maturity date to April 19, 2028, providing longer financial stability.
• Broader eligibility for assets in borrowing base supports capital needs.
• Additional revolving commitments allowed up to $2.0 billion enhance financial flexibility.

Negative

• None.

IRVINE, Calif.--(BUSINESS WIRE)-- Rivian Automotive, Inc. (NASDAQ: RIVN) has today announced that Rivian Holdings LLC, a direct subsidiary of Rivian Automotive, has entered into an Amended and Restated asset-based revolving Credit Agreement (A&R Credit Agreement) with JPMorgan Chase Bank as administrative agent. This A&R Credit Agreement amended Rivian’s existing credit agreement dated May 20, 2021.

Among other things, the A&R Credit Agreement amended the existing Credit Agreement to:

• Double the (currently undrawn) revolving commitments to $1.5 billion
• Increase the letter of credit sublimit from $500 million to $1.0 billion
• Extend the maturity date from May 20, 2025 to a date that is the earlier of April 19, 2028 and a date that is 91 days prior to the stated maturity of certain series of debt for borrowed money (subject to certain exclusions) with an aggregate principal amount equal to or exceeding $200 million then outstanding
• Amend the borrowing base to expand eligibility (subject to reserves and other exclusions) of certain assets - for example, in-transit batteries
• Change the interest rate benchmark
• Amend certain other covenants and baskets to broaden future indebtedness as part of Rivian's capital roadmap.

Claire McDonough, CFO, Rivian said:

“The amendments to our asset-based revolving credit facility reinforce Rivian's strong balance sheet position and reflect an important step in our portfolio based capital roadmap. Our amended asset-based revolving credit facility doubles the available revolving commitments to $1.5 billion, increases the letters of credit capacity, extends the maturity and includes other amended terms structured to support the rapid scaling of our business.”

The A&R Credit Agreement also permits Rivian Holdings, subject to the terms and conditions thereof, to obtain additional revolving commitments, so long as the total amount of all revolving commitments under the A&R Credit Agreement does not exceed $2.0 billion after giving effect to such additional revolving commitments.

About Rivian:

Rivian exists to create products and services that help our planet transition to carbon neutral energy and transportation. Rivian designs, develops, and manufactures category-defining electric vehicles and accessories and sells them directly to customers in the consumer and commercial markets. Rivian complements its vehicles with a full suite of proprietary, value-added services that address the entire lifecycle of the vehicle and deepen its customer relationships. Learn more about the company, products, and careers at www.rivian.com.

Forward-Looking Statements

This press release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. Forward-looking statements represent Rivian’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions and risks relating to Rivian’s business, including those described in Rivian’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission and Rivian’s subsequent filings. These factors could cause actual results to differ materially from those indicated by forward-looking statements made in this press release. Any forward-looking statements included in this press release speak only as of the date of this press release, and Rivian does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230419005935/en/

Investors: ir@rivian.com

Media: Harry Porter media@rivian.com

Source: Rivian Automotive, Inc.

FAQ

What is the significance of Rivian's new credit agreement?

Rivian's new credit agreement doubles its available revolving commitments and enhances financial flexibility, supporting its growth plans.

When does the new maturity date for Rivian's credit agreement expire?

The new maturity date for Rivian's credit agreement is April 19, 2028.

How does the credit agreement benefit Rivian's operations?

It increases liquidity by raising the letter of credit sublimit and expanding borrowing options, which aids in operational scaling.

What are the key financial changes in Rivian's amended credit agreement?

The credit agreement has doubled revolving commitments to $1.5 billion and increased the letter of credit sublimit to $1.0 billion.

Is Rivian's new credit facility a positive sign for investors?

Yes, the new credit facility strengthens Rivian's financial position and supports future investment and growth opportunities.