Lucid Group greenshoe upsizes 1.25% convertibles to $2.01 billion

By Wendy Van Sickle

Columbus, Ohio, Dec. 20 – Underwriters for Lucid Group Inc.’s 1.25% five-year convertible notes fully exercised their $262.5 million greenshoe, increasing the total size of the deal to $2,012,500,000, according to a news release.

The company priced $1.75 billion of the convertibles after the market close on Dec. 9 at 99.5 with an initial conversion premium of 50%, as previously reported.

Pricing came at the cheap end of talk for a coupon of 0.75% to 1.25% and an initial conversion premium of 50% to 55%, according to a market source.

BofA Securities Inc. and Citigroup Global Markets Inc. were bookrunners for the Rule 144A offering.

The notes are non-callable until Dec. 20, 2024 and then subject to a 130% hurdle.

They are putable upon a fundamental change. There is dividend protection above 0 cents a quarter.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to finance or refinance eligible green investments, for business expansion and for general corporate purposes.

Lucid Group is a Newark, Calif.-based electric vehicle manufacturer.

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