Electric and hydrogen fuel cell vehicle manufacturer Nikola Corp (NKLA) has announced its plans to offer $325 million in senior convertible notes, according to a filing with the U.S. Securities and Exchange Commission on Monday. These notes, which are convertible into the company’s shares, represent a direct registered offering to investors.
The initial closing for the sale of $125 million of these notes is expected around August 21, at a purchase price of $1,000 per $1,000 principal amount of notes. Nikola anticipates that the net cash proceeds from the offering will be approximately $124.5 million, after taking into consideration estimated offering expenses.
The company may decide to offer an additional $200 million of notes in subsequent closings. Unlike traditional offerings, this one will be made directly to investors, without the involvement of an underwriter or placement agent.
Investors in the notes will receive an interest rate of 5 percent per year, payable quarterly in arrears starting from January 1, 2024. This decision underscores Nikola’s strategic approach to secure funding, reflecting confidence in its innovative electric vehicle technology and future growth.
Read the most up to date Fuel Cell and Hydrogen Industry news at FuelCellsWorks
