Fisker Intends To Offer $340 Million Convertible Notes; Stock Down In Pre-market

(RTTNews) - Fisker Inc. (FSR), an electric vehicle manufacturer, on Monday announced that it is signing a securities purchase agreement to offer $340 million of senior unsecured convertible notes due 2025 to an institutional investor.

The notes have a discount of 12 percent, bringing the gross proceeds to $300 million for the company. The offer is expected to close on July 11.

Fisker will also grant the investor the right to purchase up to an additional $226.67 million of notes during the six months beginning on the one-year anniversary of the closing date of the offering. If the investor exercises this right, then the company can exercise the right to purchase an additional $113.33 million of notes increasing the potential of the notes to $680 million.

All amounts due under the notes are convertible anytime at the investor's option into common stock of the company with a par value of $0.00001 per share having an initial conversion price of $7.80.

The company intends to use the net proceeds from the offering for general corporate purposes.

TD Cowen is the financial advisor for the company and Herrington & Sutcliffe LLP is the legal advisor.

In pre-market activity, shares of Fisker are trading at $5.85 down by2.50% or $0.15 on the New York Stock Exchange.