Lucid Group, Inc. Announces Closing of Private Offering of $1.1 Billion of Convertible Senior Notes Due 2030

Core Viewpoint - Lucid Group, Inc. has successfully closed a $1.1 billion convertible senior notes offering due in 2030, which is expected to enhance its growth prospects and strengthen its partnership with the Public Investment Fund (PIF) [2][3]. Group 1: Offering Details - The offering includes an aggregate principal amount of $1.1 billion in convertible senior notes, with an additional $100 million option exercised by initial purchasers [2]. - The effective conversion price of the notes is set at $4.80 per share, representing a 100% premium over the last reported sale price of $2.40 per share on April 2, 2025 [3]. - The net proceeds from the offering are approximately $1,082.2 million after deducting discounts, commissions, and estimated expenses [4]. Group 2: Use of Proceeds - Approximately $935.6 million of the net proceeds will be used to repurchase about $1,052.5 million of existing 1.25% convertible senior notes due in 2026 [4]. - About $118.3 million of the net proceeds is allocated to cover the costs of capped call transactions [4]. - The remaining proceeds will be utilized for general corporate purposes [4]. Group 3: Strategic Implications - The partnership with the PIF is highlighted as a key strategic differentiator for Lucid, aiding in its pursuit of a sustainable future [3]. - The company has the flexibility to settle conversions in cash, shares, or a combination, which may help manage potential dilution or cash obligations [5].