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

[mkg3]

-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?

We won't know until the actual debt is offered. Probably will say something like "general corporate funds" so that they can use it however is appropriate/as they see the need.

If I had to guess, its to cover the cost of raw materials, inflation from suppliers and the general labor costs increasing more than planned.

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[DuoRivians]

In my opinion, Rivian has institutions approaching them proactively for chance to invest, and Rivian is taking advantage of the opportunity.

I think the market is reading this wrong as solely Rivian going out to raise debt without a strong bid in place.

 

[Craigins]

In my opinion, Rivian has institutions approaching them proactively for chance to invest, and Rivian is taking advantage of the opportunity.

I think the market is reading this wrong as solely Rivian going out to raise debt without a strong bid in place.

Just like back in March. Secure the debt in favorable terms now instead of being subject to the random environment when you actually need it.

 

[av8or]

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

Wish I would have.?

 

[1T2022]

I dumped at $20

 

[jjswan33]

Typical market reaction..

We know they will need to raise capital, they raise 1.5bn, I guess that means they are worth 3-4bn less then yesterday...

 

[1T2022]

because WS is full of shit

 

[mkg3]

Bit more insight....

Update: Rivian Automotive Shares Decline on $1.5 Billion Green Convertible Notes Private Offering
MT NEWSWIRES

11:23 AM EDT, 10/05/2023 (MT Newswires) -- (Updates to add stock movement in the headline and first paragraph.)
Rivian Automotive (RIVN.NaE) shares fell 20% in recent Thursday trading after the company said late Wednesday it is planning a $1.5 billion private offering of green convertible senior notes due 2030 aimed at qualified institutional buyers.
The company said it expects to give the initial purchasers an option to buy up to an additional $225 million of notes.

Rivian expects to use an amount equal to the net proceeds from the notes sale to finance, refinance and make investments in eligible green projects. The company may temporarily invest the remainder of the net proceeds in cash, cash equivalents and marketable securities.

Additionally, Rivian said it expects to enter into privately negotiated capped call transactions to cover the number of shares that will initially underlie the notes.

Price: 18.95, Change: -4.74, Percent Change: -20.00

 

[kylealden]

It's a good thing I bought a bunch of shares yesterday right before this news came out because I'm a big smart investor

 

[1T2022]

yesterday's 10% pump was strange. Maybe someone heard the rumor in a wrong way

 

[jjswan33]

yesterday's 10% pump was strange. Maybe someone heard the rumor in a wrong way

Any more strange than Tuesdays 10% drop after beating delivery estimates?

 

[jjswan33]

https://electrek.co/2023/10/05/why-rivian-rivn-stock-plummeting-today/

Elektrek with a fair take IMO

 

[Oldsmobile_Mike]

I bought more. In for the long haul, baby. ? Although, I'm a bit surprised they're doing this now. I had thought it wouldn't be until mid 2024-ish that they'd need to raise the money.

 

[jjswan33]

I bought more. In for the long haul, baby. ? Although, I'm a bit surprised they're doing this now. I had thought it wouldn't be until mid 2024-ish that they'd need to raise the money.

I'm with you I also added to my RIVN position today at ~$19 brings my average price to around $24. So much for having a diversified portfolio ?‍

 

[AbhorViolence]

Happy to more than double my position today at ~$19. Even if dilution may warrant a ~10% drop, -20% is far out.

Big picture to anyone paying attention, this is expected as part of the business plan, so it's hardly even news. Much more important is the excellent q3 delivery numbers.

We're also seeing a lot of the usual fud misinformation like "Rivian didn't increase guidance" [with the q3 delivery numbers]. But why would they at that time? Makes no sense.

But markers aren't rational, so we're presented with opportunities like this.

Update: added more at $18.56.

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