NIO - Rivian's $1.5B Green Note Offering Sends Stock Tumbling 8% Even As EV Maker Allays Liquidity Concerns | Benzinga
Rivian Automotive, Inc. (NASDAQ:RIVN) witnessed an approximately 8% drop in after-hours trading on Wednesday after announcing a debt offering. Alongside this, the company also provided a preliminary print of its third-quarter revenue, which fell in line with expectations.
Debt Offering: Rivian, headquartered in Irvine, California, revealed its intention to raise $1.5 billion by issuing green convertible senior notes due in 2030 through a private offering to qualified institutional buyers. The company also plans to grant initial note purchasers the option to acquire up to an additional $225 million worth of notes.
Green notes are designed to secure capital for environmentally friendly and climate-conscious projects, offering incentives such as tax exemptions and credits. Interest on these notes will be payable semi-annually in arrears, and any unredeemed or unconverted notes will mature on October 15, 2030. Rivian has stated that it will have the discretion to settle conversions in cash, Class A shares, or a combination of both.
The proceeds from this offering will be used by Rivian to finance, refinance, and make direct investments in new or recently completed projects, as well ...