By Wendy Van Sickle
Columbus, Ohio, July 17 – Lion Electric Co. plans to issue C$90 million of 11% five-year senior secured non-convertible debentures in a private placement to a group of subscribers led by Mach Group and the Mirella & Lino Saputo Foundation, according to a news release.
The company will also privately place purchase warrants to the holders of the debentures entitling them to purchase a total of 22.5 million common shares at an exercise price of C$2.81 per share.
The proceeds, along with those of a US$74 million private placement of 13% senior unsecured convertible debentures, will be used for working capital and to allow the company to pursue its growth strategy, including capacity expansion projects in Mirabel, Quebec, and Joliet, Ill.
Concurrently with the financings, the company will also amend its senior credit facilities to, among other things, permit the incurrence of the financings and extend the maturity one year to Aug. 11, 2025.
The manufacturer of all-electric medium- and heavy-duty urban vehicles is based in Montreal.
| Issuer: | Lion Electric Co.
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| Amount: | C$90 million
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| Issue: | Senior secured non-convertible debentures
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| Tenor: | Five years
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| Coupon: | 11%
|
| Call: | Any time after six months at par
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| Lead subscribers: | Mach Group and Mirella & Lino Saputo Foundation
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| Distribution: | Private placement
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| Announcement date: | July 17
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| Closing date: | July 19
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