Lucid Group, Inc., a leading electric vehicle manufacturer, has closed a $1.1 billion convertible senior notes offering due 2030, which includes the full exercise of a $100 million purchase option by initial buyers. As part of the offering, Lucid entered into capped call transactions that raise the effective conversion price of the notes to $4.80 per share—double the April 2, 2025, closing price of $2.40—helping reduce potential dilution or cash payments upon conversion. “We are delighted to have completed this offering, which better positions Lucid for future growth and success, while strengthening our already close partnership with the PIF, and minimizing any effect to existing shareholders,” said Taoufiq Boussaid, Chief Financial Officer at Lucid. “The support of the PIF continues to be one of Lucid’s key strategic differentiators as we work together toward a more sustainable future.”
Net proceeds from the offering total approximately $1.08 billion, after deducting fees and expenses. Of this, Lucid allocated around $118.3 million for the capped call transactions and used approximately $935.6 million to repurchase $1.05 billion of its outstanding 1.25% convertible senior notes due 2026. The remaining funds will be used for general corporate purposes.
Lucid retains the flexibility to settle note conversions in cash, stock, or a mix of both, offering further control over dilution and financial impact.
