Lucid Group Secures $975 Million in Convertible Notes for Strategic Growth

New updates have been reported about Lucid Group (PC:LUCID)

Lucid Group, a leading electric vehicle manufacturer, has successfully closed a $975 million offering of convertible senior notes due in 2031. This financial maneuver, which includes an option for initial purchasers to acquire an additional $100 million in notes, aims to bolster the company’s balance sheet and support its long-term growth strategy. The transaction reflects strong institutional investor confidence, including backing from the Public Investment Fund (PIF), in Lucid’s vision for sustainable transportation driven by cutting-edge technology.

The net proceeds from this offering, approximately $962.4 million after expenses, have been partially allocated to repurchase $755.7 million of existing 1.25% convertible notes due in 2026. This move not only reduces near-term debt obligations but also provides Lucid with greater financial flexibility. The remaining funds are earmarked for general corporate purposes, allowing Lucid to continue its focus on innovation and expansion. CFO Taoufiq Boussaid emphasized the strategic importance of this transaction in minimizing shareholder impact while positioning the company for future success. Lucid’s ability to settle conversions in cash, stock, or a combination thereof further enhances its capacity to manage potential dilution and cash requirements. This development underscores Lucid’s commitment to maintaining a robust financial foundation as it advances its mission to lead in the electric vehicle sector.