By Abigail W. Adams
Portland, Me., Dec. 10 – Lucid Group Inc. priced $1.75 billion of five-year convertible notes after the market close on Thursday at 99.5 with a coupon of 1.25% and an initial premium of 50%, according to a market source.
Pricing came at the cheap end of talk for a coupon of 0.75% to 1.25% and an initial conversion premium of 50% to 55%, according to a market source.
BofA Securities Inc. and Citigroup Global Markets Inc. were bookrunners for the Rule 144A offering, which carries a greenshoe of $262.5 million.
The notes are non-callable until Dec. 20, 2024 and then subject to a 130% hurdle.
They are putable upon a fundamental change. There is dividend protection above 0 cents a quarter.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Net proceeds are expected to be $1.727 billion or will be $1.987 billion if the greenshoe is exercised in full.
Proceeds will be used to finance or refinance eligible green investments, for business expansion and for general corporate purposes.
Lucid Group is a Newark, Calif.-based electric vehicle manufacturer.
| Issuer: | Lucid Group Inc.
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| Amount: | $1.75 billion
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| Greenshoe: | $262.5 million
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| Issue: | Convertible senior notes
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| Maturity: | Dec. 15, 2026
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| Bookrunners: | BofA Securities Inc. and Citigroup Global Markets Inc.
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| Coupon: | 1.25%
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| Price: | 99.5
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| Conversion premium: | 50%
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| Conversion price: | $54.78
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| Conversion rate: | 18.2548
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| Call options: | Non-callable until Dec. 20, 2024 and then subject to a 130% hurdle
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| Put options: | Upon a fundamental change
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| Pricing date: | Dec. 9
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| Settlement date: | Dec. 14
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| Distribution: | Rule 144A
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| Talk: | Coupon of 0.75% to 1.25% and initial conversion premium of 50% to 55%
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| Stock symbol: | Nasdaq: LCID
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| Stock price: | $36.52 at market close Dec. 9
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| Market capitalization: | $60.13 billion
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