$1.1B new convertible offering and repurchase of ~$1B principal of existing 1.25% convertible notes due in 2026.
New issue structured efficiently with PIF support from prepaid forward share purchase, 5-year maturity, and capped
call overlay resulting in effective conversion price of $4.80.
NEWARK, Calif., April 8, 2025 /PRNewswire/ — Lucid Group, Inc. (Nasdaq: LCID), maker of the world’s most advanced electric vehicles, today announced the closing of $1.1 billion aggregate principal amount of convertible senior notes due 2030 including the exercise in full of the option granted to the initial purchasers to purchase up to $100.0 million aggregate principal amount of notes.
“We are delighted to have completed this offering, which better positions Lucid for future growth and success, while strengthening our already close partnership with the PIF, and minimizing any effect to existing shareholders,” said Taoufiq Boussaid, Chief Financial Officer at Lucid. “The support of the PIF continues to be one of Lucid’s key strategic differentiators as we work together toward a more sustainable future.”
In connection with the offering, Lucid purchased capped call hedges to increase the effective conversion price of the notes to $4.80 per share of Lucid’s Class A common stock, which represents a premium of 100% over the last reported sale price of Lucid’s Class A common stock on The Nasdaq Global Select Market of $2.40 per share on April 2, 2025. As a result of the capped call transactions, dilution or cash obligations upon a conversion of the notes should be mitigated by such increase in the effective conversion price of the notes.
The net proceeds from the offering are approximately $1,082.2 million, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses. Lucid used approximately $118.3 million of the net proceeds from the offering to pay the cost of the capped call transactions described above and approximately $935.6 million of the net proceeds to fund repurchases of approximately $1,052.5 million aggregate principal amount of its outstanding 1.25% convertible senior notes due 2026. Lucid intends to use the remainder of the net proceeds for general corporate purposes.
Lucid has the optionality to settle any conversions in cash, shares of its Class A common stock, or a combination of cash and shares to further influence potential dilution or cash obligations upon any future conversion of the notes.
About Lucid Group
Lucid (NASDAQ: LCID) is a Silicon Valley-based technology company focused on creating the most advanced EVs in the world. The award-winning Lucid Air and new Lucid Gravity deliver best-in-class performance, sophisticated design, expansive interior space and unrivaled energy efficiency. Lucid assembles both vehicles in its state-of-the-art, vertically integrated factory in Arizona. Through its industry-leading technology and innovations, Lucid is advancing the state-of-the-art of EV technology for the benefit of all.
