RIYADH: The Saudi Public Investment Fund, which owns the majority of the electric vehicle manufacturer Lucid Group, has finalized a $1.1 billion issue of convertible senior notes that are due in 2030. About $1.05 billion in total principal of the company’s existing 1.25 percent convertible senior notes due in 2026 would be repurchased with $935.6 million of the net proceeds, according to a statement.
Additionally, an option offered to the original purchasers was exercised as part of the offering, enabling them to purchase an additional $100 million in principal of the new notes. Days before to the capital round, Lucid said that 3,109 vehicles had been delivered in the first quarter, a 58 percent increase over the same time previous year. By borrowing funds that can be converted into shares in the future, Lucid is able to generate capital now while shielding current investors from dilution through the sale of convertible senior notes.
“We are happy to have finished this offering, which better positions Lucid for future growth and success, strengthens our already close partnership with the PIF, and minimizes any effect to existing shareholders,” stated Taoufiq Boussaid, Lucid’s chief financial officer.
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