Fisker Raises $340M Via Debt, With Potential Option To Increase To $680M

Fisker Inc FSR has signed a securities purchase agreement in connection with its intention to offer $340 million of 0% senior unsecured convertible notes due 2025 to an institutional investor.

The agreement comes with the potential to increase the aggregate principal amount of the notes to $680 million.

The notes have an original issue discount of approximately 12%, resulting in gross proceeds of $300 million to Fisker.

The company has also granted the investor the right to purchase up to an additional $226.67 million in aggregate principal amount of notes during a six-month period beginning on the one-year anniversary of the closing date of the offering.

Fisker intends to use the net proceeds for general corporate purposes, including working capital and an additional battery pack line to support growth in 2024.

The offering is expected to close on July 11, 2023.

Fisker is canceling the remaining balance of its at-the-market equity program, which was approximately $23.4 million as of June 30, 2023.

Also Read: Fisker Reports Lower-Than-Expected Q2 Production Due To Supply Shortages

Price Action: FSR shares are trading lower by 0.83% at $5.95 on the last check Monday.