By Abigail W. Adams
Portland, Me., March 8 – Rivian Automotive Inc. priced $1.3 billion of six-year green convertible notes after the market close on Tuesday at par at the cheap end of talk with a coupon of 4.625% and an initial conversion premium of 37.5%, according to a company news release and a market source.
Price talk was for a coupon of 4.125% to 4.625% and an initial conversion premium of 37.5% to 42.5%.
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 redeemable for cash 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.
Net proceeds are expected to be $1,286,100,000 or will be $1,484,100,000 if the greenshoe is exercised in full.
Proceeds will be used to finance, refinance or make investments in eligible green projects.
Rivian is an Irvine, Calif.-based electric vehicle manufacturer.
| Issuer: | Rivian Automotive Inc.
|
| Amount: | $1.3 billion
|
| Greenshoe: | $200 million
|
| Issue: | Green convertible senior notes
|
| Maturity: | March 15, 2029
|
| Bookrunners: | Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Barclays
|
| Coupon: | 4.625%
|
| Price: | Par
|
| Yield: | 4.625%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $20.13
|
| Conversion rate: | 49.6771
|
| Call options: | Non-callable until March 20, 2026 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | March 7
|
| Settlement date: | March 10
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 4.125% to 4.625% and initial conversion premium of 37.5% to 42.5%
|
| Stock symbol: | Nasdaq: RIVN
|
| Stock price: | $14.64 at market close March 7
|
| Market capitalization: | $13.57 billion
|
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