newarticlenews

Latest and Fastest news for you

Education

Rivian Sinks After EV Maker Plans Convertible Note Offering

[ad_1]

(Bloomberg) — Rivian Automotive Inc. sank in post market trading Wednesday after the electric-vehicle maker announced plans to issue $1.5 billion in convertible debt and reported preliminary third-quarter revenue.

Most Read from Bloomberg

Shares of Rivian fell as much as 9.2% to $21.50 after the disclosure and regular trading. The stock had risen about 29% this year as of the close on Wednesday.

The Irvine, California-based company said in a securities filing that it planned to offer green convertible senior notes due in 2030 as a private offering to qualified institutional buyers. It granted the purchasers an option to buy an additional $225 million.

Rivian also said it expects revenue for the three months ended Sept. 30 in a range of $1.29 billion to $1.33 billion, compared with a $1.3 billion consensus estimate from analysts surveyed by Bloomberg.

The bond issuance, which could dilute the current shareholders’ interests, comes after the company disappointed investors earlier this week by maintaining its full-year guidance for producing 52,000 battery-electric vehicles this year.

Rivian manufactures two consumer models and a plug-in delivery van for Amazon.com Inc., its biggest shareholder. It’s a front-runner in a large pack of startups chasing market incumbent Tesla Inc., but has struggled with supply-chain challenges and a slow ramp since its November 2021 initial public offering.

Rivian plans to release its official financial results for the third quarter on Nov. 7.

Most Read from Bloomberg Businessweek

©2023 Bloomberg L.P.

[ad_2]

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *