Rivian talks six-year green convertible notes to yield 4.125%-4.625%, up 37.5%-42.5%

By Abigail W. Adams

Portland, Me., March 7 – Rivian Automotive Inc. plans to price $1.3 billion of six-year green convertible notes after the market close on Tuesday with price talk for a coupon of 4.125% to 4.625% and an initial conversion premium of 37.5% to 42.5%, according to a market source.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Barclays are bookrunners for the Rule 144A offering, which carries a greenshoe of $200 million.

The notes are non-callable until March 20, 2026 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to finance, refinance or make investments in eligible green projects.

Rivian is an Irvine, Calif.-based electric vehicle manufacturer.

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