Fisker has revealed its intention to raise substantial capital through a strategic financial maneuver. The company has announced plans to offer $170,000,000 in aggregate principal amount of 0% senior unsecured convertible notes due in 2025. This move comes as part of Fisker’s broader strategy to accelerate deliveries, expand its growth trajectory, and fast-track its vehicle programs.
The financing initiative is directed towards an existing institutional investor and is set to result in gross proceeds of $150,000,000 for Fisker. These Notes are being issued in accordance with a Securities Purchase Agreement initially established on July 10, 2023, and subsequently amended on September 29, 2023. The Original Purchase Agreement, along with its amendment, constitutes the framework for this significant financial transaction.
See also: Fisker Hits 5,000 Ocean SUVs Milestone, Targets 300 Daily Deliveries
What sets this development apart is the Purchase Agreement Amendment, which grants Fisker the flexibility to offer up to an additional $623,333,334 in aggregate principal amount of 0% senior unsecured convertible notes. These additional notes also carry an original issue discount of approximately 12%, potentially resulting in extra gross proceeds of up to $550,000,000 for the electric vehicle manufacturer.
This latest capital infusion follows a previous convertible notes offering in July 2023 when Fisker successfully secured $340,000,000 in aggregate principal amount from the same institutional investor. These financial injections are poised to empower Fisker in various ways, enabling the company to not only meet its delivery targets but also expand its growth prospects and expedite the development of its vehicle lineup.
It’s worth noting that Fisker has been making significant strides in the electric vehicle market. The company commenced deliveries of its inaugural vehicle, the all-electric Fisker Ocean SUV, earlier this year in both the United States and Europe. This achievement followed a successful production launch in November 2022. Moreover, in August, Fisker unveiled its ambitious vision for future products, including the Fisker PEAR crossover, the Fisker Alaska pickup truck, the Fisker Ronin super GT convertible, and the Fisker Force-E offroad package designed for the Ocean SUV.
TD Cowen played a pivotal role in advising Fisker on this financial endeavor, serving as the company’s financial advisor. Orrick, Herrington & Sutcliffe LLP provided legal counsel to Fisker, ensuring the transaction adhered to all regulatory and legal requirements.
