Lucid Group, Inc. Prices $1,000,000,000 Convertible Senior Notes Offering

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[{"type":"text","content":"NEWARK, Calif., April 3, 2025 /PRNewswire/ -- Lucid Group, Inc. (Nasdaq: LCID) today announced the pricing of its offering of $1,000,000,000 aggregate principal amount of 5.00% convertible senior notes due 2030 in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The issuance and sale of the notes are scheduled to settle on or about April 8, 2025, subject to the satisfaction of customary closing conditions. Lucid also granted the initial purchasers of the notes 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 $100,000,000 principal amount of notes.\n\n \n \n \n \n \n \n\n \nThe Notes\nThe notes will be senior, unsecured obligations of Lucid and will accrue interest at a rate of 5.00% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2025. The notes will mature on April 1, 2030, unless earlier repurchased, redeemed or converted. Before January 1, 2030, noteholders will have the right to convert their notes only upon the occurrence of certain events and during specified periods. From and after January 1, 2030, noteholders may 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 will 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 initial conversion rate is 333.3333 shares of common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $3.00 per share of common stock. The initial conversion price represents a premium of approximately 25.0% over the last reported sale price on The Nasdaq Global Select Market of $2.40 per share of Lucid's common stock on April 2, 2025. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events. If a \"make-whole fundamental change\" (as defined in the indenture for the notes) occurs, Lucid will, in certain circumstances, increase the conversion rate for a specified time for holders who convert their notes in connection with that make-w...

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