EV Maker Rivian Sinks on $1.5 Billion Offering

Rivian (RIVN:US) has reported preliminary revenue for the third quarter in the filing for the offering of $1.5 billion in green convertible senior notes due in 2030.

Shares fell about 8% in early New York trading on Thursday. This way, the offering helped to practically erase all gains from Wednesday, when Rivian stock closed 9.2% higher. 

Rivian said it expects its third-quarter revenue to be in the range of $1.29 billion to $1.33 billion, which is in line with the estimate of $1.3 billion. Moreover, the company's preliminary cash and cash equivalents stand at $9.1 billion, surpassing the estimate of $8.44 billion.

However, the stock was mostly hit by the news that Rivian is planning to offer $1.5 billion of green convertible senior notes due in 2030 in a private offering to qualified institutional buyers. 

The EV company expects to grant the initial purchasers an option to purchase up to an additional $225 million principal amount of notes.

These notes will be senior and unsecured obligations of Rivian, with interest payable semi-annually in arrears. The maturity date for these notes is set for October 15, 2030.

“Noteholders will have the right to convert their notes in certain circumstances and during specified periods. Rivian will settle conversions by paying or delivering, as applicable, cash, shares of its Class A common stock (the “common stock”) or a combination of cash and shares of its common stock, at Rivian’s election,” it is said in the statement.

Congress member Daniel Goldman was trading shares in the EV maker earlier this year.