What's Going On With Fisker Stock Today?

Fisker Inc FSR shares are trading higher. The company announced a convertible notes offering Monday morning.

What Happened: Fisker said it signed a securities purchase agreement in connection with its intention to offer $340 million worth of 0% senior unsecured convertible notes due 2025. 

The offering is being made to an institutional investor and has the potential to increase to $680 million. Fisker also granted the investor the right to purchase up to approximately $226.6 million in additional notes over a six-month period. 

The initial notes are expected to result in gross proceeds of $300 million. Fisker said it intends to use proceeds for general corporate purposes, including working capital, an additional battery pack line to support growth, sales and marketing, capital expenditures and the development of future products.

The offering is expected to close on Tuesday. Fisker also announced that it will cancel the remaining balance on its at-the-market equity program, which was approximately $23.4 million as of the end of June. 

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FSR Price Action: Fisker shares were up 2.15% at $6.14 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Fisker.