Lucid Group Completes a $1.1 Billion Private Offering for Growth Initiatives

Lucid Group Completes $1.1 Billion Convertible Notes Offering

Lucid Group, Inc. (Nasdaq: LCID), recognized for producing cutting-edge electric vehicles, announced the successful closure of its $1.1 billion private offering of convertible senior notes with a maturity date set for 2030. This strategic move not only positions Lucid for significant growth but also reinforces its relationship with the Public Investment Fund (PIF). In this offering, the option for initial purchasers was fully exercised, adding up to an impressive total of $1.1 billion in principal amount.

What's Behind the Offering?

The CEO of Lucid, Taoufiq Boussaid, expressed enthusiasm about completing this offering, highlighting that it not only enhances their financial standing but also strengthens their strategic partnership with the PIF. This collaboration is viewed as a vital element in Lucid’s strategies aimed at pursuing a sustainable future in the automotive industry.

The offering included new notes structured efficiently, thanks to support from the PIF's prepaid forward share purchases, which contributed to a five-year maturity period. The effective conversion price of the notes is set at $4.80 per share, which is a remarkable 100% premium compared to the last reported sale price of Lucid's Class A common stock, which stood at $2.40 on April 2, 2025. By implementing capped call transactions, Lucid aims to mitigate potential dilution effects or cash obligations when converting these notes into shares.

Strategic Use of Proceeds

With net proceeds estimated to be around $1,082.2 million after covering initial discounts and commissions, Lucid plans to channel approximately $118.3 million towards costs associated with their capped call transactions. Additionally, $935.6 million will be used to repurchase a significant portion of its existing 1.25% convertible senior notes which are due in 2026. The company intends to allocate any remaining funds to general corporate purposes, enhancing overall operational flexibility.

Future Outlook

Looking ahead, Lucid retains the option to settle any conversions of these notes either in cash, shares of its Class A common stock, or a combination of both. This flexibility is designed to help reduce potential dilution concerns or cash obligations linked to future note conversions. As the company continues to innovate in the electric vehicle sector, it emphasizes its commitment to driving sustainable automotive solutions through cutting-edge technology and design.

About Lucid Group

Based in Silicon Valley, Lucid Group stands at the forefront of the electric vehicle revolution, offering models like the award-winning Lucid Air and the new Lucid Gravity. These vehicles are celebrated for their superior performance, elegant design, spacious interiors, and remarkable energy efficiency. Manufactured in Lucid's advanced vertically integrated facility in Arizona, these EVs exemplify the future of sustainable transport.

As Lucid Group forges ahead, the path seems promising, underpinned by robust financial strategies and partnerships that support its mission to redefine the standards of luxury electric vehicles and sustainable driving technology. Investors and enthusiasts alike are advised to keep a close eye on how this private offering enhances their operational capabilities and market positioning in the evolving automotive landscape.