Rivian has announced it is offering $1.5 billion green convertible senior notes due in 2030. The American EV startup is granting buyers the option to purchase an additional $225 million.
The cash-raise was revealed in a securities filing. Rivian noted that its cash, cash equivalent, and short-term investments amounted to $9.1 billion, dropping from $10.2 billion in Q2 2023.
The notes can be redeemed in whole or in part for cash from October 20, 2027, subject to certain conditions. While the note offering is expected to dilute Rivian’s common stock, it will take steps to reduce the dilution.
Rivian stock fell at the news of the note offering.
As part of the securities filing, Rivian disclosed that its Q3 2023 revenue would fall between $1.29 billion and $1.33 billion. Wall Street was expecting $1.3 billion. Rivian, however, still maintains its 52,000-unit target for the year. It built 16,304 EVs in the just concluded quarter and delivered 15,564, a 24 percent improvement over Q2.
Rivian has on the market the electric R1T pickup truck and R1S SUV. It also produces an electric delivery fan, the EDV, for Amazon, its largest shareholder.
Rivian will release full Q3 financial results on November 7.
