Lucid Group, Inc‘s (NASDAQ:LCID) stock price fell on Wednesday after announcing a fresh convertible note sale.
The company outlined a private offering of new senior notes due 2031 to institutional buyers.
Lucid launched $875 million of convertible senior notes due 2031. It also granted an option to purchase up to $100 million more within 13 days.
Also Read: Tesla’s First Semi Vehicle Customer After Full Production Launch Is….Tesla?
Management plans to use most of the proceeds to retire the 2026 convertible notes. The move extends maturities and supports liquidity for ongoing operations.
The notes rank senior and unsecured and pay interest semiannually. They mature on Nov. 1, 2031, unless earlier converted, redeemed, or repurchased.
Conversion Mechanics
Lucid may settle conversions in cash, stock, or a combination. Initial terms include an approximate conversion price of $20.81 and standard adjustment provisions.
Lucid can redeem the notes for cash starting November 6, 2028, subject to price tests and liquidity. Holders receive repurchase rights in 2029 and upon certain fundamental changes.
Lucid expects about $863.5 million in net proceeds, excluding the option. It intends to repurchase a portion of its 2026 notes and fund general corporate needs.
Recent Earnings
Lucid reported third-quarter revenue of $336.58 million, missing analyst estimates of $379.11 million. The electric vehicle maker reported a third-quarter adjusted loss of $2.65 per share, missing estimates for a loss of $2.27 per share.
Lucid exited the quarter with approximately $4.2 billion in total liquidity. After the quarter's end, the Public Investment Fund and Lucid agreed to increase the delayed draw term loan credit facility from $750 million to approximately $2 billion, bringing Lucid's liquidity up to $5.5 billion.
Lucid did not provide an update on its total production forecast for 2025. The company said last quarter that it was targeting total production of 18,000 to 20,000 vehicles for 2025.
Price Action: LCID shares are trading lower by 4.18% to $16.28 at last check Won ednesday.
Read Next:
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
