Lucid Group Inc. (LCID) stock went down by 6.08% in the aftermarket when the company announced a convertible senior notes offering. In the regular session, the stock was up by 1.91%, trading in the green at 50.14M shares. The sock varied between $41.34 and $45.40 to close the session at $44.72. Following the news of the offering, LCID stock fell down to $42.00 at an afterhours’ volume of 4.72M shares.
More about LCID
Founded in 2007, the electric car maker, Lucid Group Inc. (LCID) is headquartered in Newark, CA. Currently, the 1.65B outstanding shares of the company trade at a market capital of $72.24B.
In the previous five trading sessions, the stock has lost over 12.5%, while gaining 9.74% last month. Moreover, LCID stock has seen a huge rise of 346.75% year to date.
Convertible Senior Notes Offering
On December 08, the company announced a proposed convertible senior notes offering to qualified institutional buyers. According to the offering, LCID intends to offer an aggregate of $1,750,000,000 of convertible senior notes in a private offering. The notes will be due in 2026. Further, an option of purchasing an additional $262,500,000 of senior notes might also be granted to the initial buyers.
Moreover, the maturation date of the notes if not repurchased, redeemed, or converted, will be December 25, 2026. According to the offering terms, the noteholders would be able to convert their notes in particular situations during specific periods only.
Furthermore, the company intends to use the net proceeds from the offering for the existing or new “Eligible Green Investments” financing or refinancing, partially or fully. In addition, the net proceeds will also provide capital for business expansion and general corporate purposes.
LCID’s Recent Developments
On December 06, the company announced the Bank of America as its preferred lender for supporting the customer ownership experience. Now, the company’s customers can either work directly or through online financing with the Bank of America for a better experience.
According to Amira Aly, the director of financial services LCID, the customers’ EV buying experience will be seamless and better streamlined through this strategic relation between Bank of America and Lucid.
Moreover, the head of vehicle lending products at the Bank of America, Fabien Thierry, also fully supported this relationship. He commented that this solution was particularly developed to make financing easier for the LCID’s customers.
