Polestar gets new $250 million loan, lifts existing loan to $1 billion

By Wendy Van Sickle

Columbus, Ohio, Nov. 8 – Polestar Automotive Holding UK plc entered into a credit agreement providing for a $250 million term loan facility with Geely Sweden Automotive Investment AB as original lender and agent on Nov. 8, according to a 6-K filing with the Securities and Exchange Commission.

The agent is a wholly owned subsidiary of Geely Sweden Holdings AB, the parent company of Volvo Car AB (publ), and one of Polestar’s affiliates.

The term loan facility consists of a term loan denominated in dollars available for general corporate purposes. The term of the facility is until June 30, 2027 and the term loan facility is required to be repaid on the final termination date, subject to GSAI exercising an option to convert all or part of the loan and accrued interest into shares of Polestar in connection with an offer of shares of any class in the share capital of Polestar, where the proposed capital raising is at least $350 million, and in which no fewer than five institutional investors participate in the offering.

Polestar may not reborrow any part of the term loan facility that has been repaid.

The interest rate applicable to borrowings under the term loan facility is term SOFR plus 497 basis points. Polestar may voluntarily prepay loans or reduce commitments under the term loan facility, in whole or in part, subject to minimum amounts and any break costs, with prior notice but without premium or penalty.

Snita loan amendment

Also on Nov. 8, Polestar entered into an amendment letter in respect of the credit agreement originally entered into on Nov. 3, 2022 in relation to its $800 million term loan facility with Snita Holding BV. Snita is a wholly owned subsidiary of Volvo Cars and one of Polestar’s affiliates.

Under the amendment letter, Polestar and Snita have agreed to increase the term loan facility to a total of $1 billion and to extend the term of the facility until June 30, 2027.

The electric performance car brand is based in Sweden.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.