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Rivian Automotive
RIVN,
priced $1.5 billion in green convertible senior notes on Thursday at about $23.29 per share of common stock.
The Irvine, Calif.-based electric-vehicle maker said the notes will accrue interest at a rate of 3.625% and are due in 2030. The company expects net proceeds of about $1.49 billion, or about $1.71 billion if initial buyers exercise certain purchase options.
The initial conversion price represents a premium of around 27.5% to Thursday’s closing price of $18.27, the company said. The initial conversion rate for the notes would be 43.929 shares of common stock per $1,000 principal amount of notes.
The company plans to use proceeds from the sale to fund eligible projects related to clean transportation, renewable energy, energy efficiency and pollution prevention.
Rivian disclosed plans for the offering after the market closed on Wednesday, along with preliminary estimates for the third quarter. The company expects sales of $1.29 billion to $1.33 billion, up from $540 million a year earlier.
