Lucid Group, Inc. Prices $1.75 Bln Convertible Senior Notes Offering

Electric vehicles maker Lucid Group, Inc. (LCID) on Friday announced the pricing of its $1.75 billion aggregate principal private offering of 1.25 percent convertible senior notes due 2026 to qualified institutional buyers.

The initial conversion rate is 18.2548 shares of common stock per $1,000 principal amount of notes implying an initial conversion price of $54.78 per share, which is at a premium of around 50 percent to the last price of $36.52 on December 9 on The Nasdaq Global Select Market. The conversion rate and conversion price would be subject to adjustment upon the occurrence of certain events.

The issuance is expected to settle on or about December 14. Lucid has also granted the initial purchasers an option, for settlement within a period of 13 days from, and including, the date the notes are first issued, to purchase up to an additional $0.26 billion of principal amount of notes.

Lucid estimates that the proceeds from the offering, net of expenses would be approximately $1,727 million (or approximately $1,987 million in case of additional purchases).

The notes would be senior, unsecured obligations of Lucid and would accrue interest at a rate of 1.25 percent per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2022.

The notes would mature on December 15, 2026, unless earlier repurchased, redeemed or converted. Before September 15, 2026, noteholders would have the right to convert their notes only upon the occurrence of certain events and during specified periods.

From and after September 15, 2026, noteholders could convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Lucid would settle conversions of notes by paying or delivering, as applicable, cash, shares of its Class A common stock or a combination thereof, at Lucid's election.

The notes would be redeemable, in whole or in part (subject to certain limitations), for cash at Lucid's option at any time, and from time to time, on or after December 20, 2024, and on or before the 31st scheduled trading day immediately before the maturity date, subject to specified conditions.

Lucid intends to use the net proceeds to finance or refinance, in whole or in part, one or more new or existing "Eligible Green Investments," Pending such allocation, the net proceeds would be used for business expansion and general corporate purposes.
Shares of Lucid Group closed Thursday's trading at $36.52, down $8.20 or 18.34 percent from previous close.

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