Lucid Group Inc (NASDAQ:LCID) is trading lower Thursday after the company announced an offering of $1.75 billion in convertible senior notes.
The notes will be senior, unsecured obligations of Lucid, will accrue interest payable semi-annually in arrears, and will mature on December 15, 2026, unless earlier repurchased, redeemed or converted.
Lucid said the interest rate, initial conversion rate and other terms of the notes will be determined at the pricing of the offering.
Lucid said it intends to use the net proceeds of the offering for business expansion and general corporate purposes, which may include investing in manufacturing capabilities, expanding and improving operations, investing in research and development and supporting other potential growth opportunities.
See Also: Why This Lucid Group Analyst Sees Pullback On SEC Probe As Buying Opportunity
Lucid is a technology and automotive company, developing the next generation of electric vehicle (EV) technologies. The Lucid Air was selected as the 2022 MotorTrend Car of the Year last month.
LCID Price Action: Lucid was down 12.70% at $39.05 at time of publication.
Photo: courtesy of Lucid.
