RIVN announces new debt offering of $1.5B convertible senior notes

[jjswan33]

https://www.marketwatch.com/story/r...-convertible-notes-b0005522?mod=mw_quote_news

From the article sounds like another 1.5 bn with an option for 225million more. Maturity in 2030

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[COdogman]

I am also accepting offers for anyone interested in sponsoring my debt. Will never mature and I will probably die before I pay you back. DM if interested!

 

[Donald Stanfield]

Put in an after hours sell order lol. We will see if it executes I can always buy back tomorrow at the lower price.

 

[SANZC02]

Put in an after hours sell order lol. We will see if it executes I can always buy back tomorrow at the lower price.

Curious to see what tomorrow does. Seems to have settled just over $22 after hours which is still higher than todays open.

 

[Donald Stanfield]

Curious to see what tomorrow does. Seems to have settled just over $22 after hours which is still higher than todays open.

Yeah I'm debating on putting in a sell order for 22 but I guess I'll just wait for market open.

 

[Biturbowned]

Permit me my ignorance, but didn’t we all know that they would need to go back to the well to continue to fund GA? Feels like some of this is already baked in to the price to me.

 

[Donald Stanfield]

Permit me my ignorance, but didn’t we all know that they would need to go back to the well to continue to fund GA? Feels like some of this is already baked in to the price to me.

That's not how the street works. Those people are super emotional and reactive. The stock price will be fine longer term but it's an opportunity to make a quick buck as it's going to probably dip tomorrow.

 

[Count Orlok]

The Count says it is great news that there are buyers for such debt instruments. Moreover, it is better for RIVN that it does it now than when it really needs it (as costs will be higher).

 

[Florida Panhandler]

Time to load up over a bit of time On company stock. , Rivian will likely use the positive sales reports for the next 4 Quarters to issue more debt as the Georgia factory starts really happening. This is not really news to Wall Street veterans so this thought will keep a lid on price upswings Through 2024. But who knows, maybe a bit of this timing has been already baked into the stock price.

 

[NineElectrics]

Permit me my ignorance, but didn’t we all know that they would need to go back to the well to continue to fund GA? Feels like some of this is already baked in to the price to me.

Raising twice within six seven months, especially when it was clear interest rates would be going up, is a bit sketchy. It looks like cluelessness. It would have been much, much cheaper to tack this onto the raise six months ago. So maybe we all knew Rivian would go back to the well, but Rivian management did not.

 

[NineElectrics]

Rivian calls these “green” notes, but since the money will finance a factory which will produce pollution credits that will be sold to other automakers, they’re neutral at best.

Building a factory actually emits quite a bit of carbon dioxide, and since selling pollution credits permit others to pollute more, there is no way to recoup that over time, unless eventually Rivian decides to keep those credits off the market.

 

[Biturbowned]

Raising twice within six months, especially when it’s clear interest rates would be going up, is a bit sketchy. It looks like cluelessness. It would have been much, much cheaper to tack this onto the raise six months ago. So maybe we all knew Rivian would go back to the well, but Rivian management did not.

if the market wants to give me more ownership in this company at a discount, who am I to disagree.

 

[1T2022]

drop 15%, will settle down -20%

 

[Rickmc]

drop 15%, will settle down -20%

-17% now

I guess I don't understand the need for 1.5 billion debt with interest if you have over 9 billion in the bank. What is 1.5 billion going to do for you, add another 6 months of reserves?

 

[1T2022]

the R2 production is on 2026. That plant alone is $5B. Lots of money to burn to become profitable .

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