Today, Lucid Motors announced that it has officially closed a deal with the Public Investment Fund (PIF) for a $1.1 billion private offering. At the end of Q4 2024, Lucid had over $6 billion in liquidity. With this capital raise, Lucid should have enough cash on hand to sustain operations through 2026 and support the launch of its midsize vehicles.
Taoufiq Boussiand CFO at Lucid Motors shared these remarks: “We are delighted to have completed this offering, which better positions Lucid for future growth and success while strengthening our already close partnership with the PIF, and minimizing any effect to existing shareholders.” =”The support of the PIF continues to be one of Lucid’s key strategic differentiators as we work together toward a more sustainable future.”
🏦 What Happened?
Lucid raised $1.1 billion by selling convertible senior notes that are due in 2030. A convertible note is a loan investors give to a company that can later be turned into stock instead of being paid back in cash.
💳 Why They Did It:
- They used the money to buy back about $1.05 billion worth of older notes that were due in 2026.
- The remaining funds go to general business needs (like operations, development, etc.).
💡 Key Details:
- These new notes have an option called a “capped call”, which raises the conversion price to $4.80. This means the notes won’t convert into stock unless Lucid’s share price goes significantly higher than it is now (which was $2.40 at the time).
- This is meant to avoid shareholder dilution (i.e., keeping the value of existing shares from getting watered down).
- The PIF (Public Investment Fund) of Saudi Arabia supported the deal — they’re a major backer of Lucid.
🧠 Why It Matters:
- Lucid is refinancing its debt smartly, pushing out the due date from 2026 to 2030.
- It’s doing this in a way that doesn’t hurt current shareholders much.
- Shows continued support from a major investor (PIF), which can be a vote of confidence.
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