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Nix

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Rivian just announced they were going to start selling bonds. Anyone know why they are starting to offer them now? It seems too early considering how much cash they have on hand, and how long they have before they will need more cash?

$1.3B green convertible note offering

“Rivian Automotive, Inc. (Nasdaq: RIVN) (“Rivian”) today announced its intention to offer, subject to market and other conditions, $1,300,000,000 aggregate principal amount of green convertible senior notes due 2029 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Rivian also expects to grant the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date the notes are first issued, up to an additional $200,000,000 principal amount of notes.”
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Rad

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I'm surprised they waited this long. I would have thought they would have done it shortly after the IPO, when $$ was cheap. They knew they were going to need significantly more capital - at least it isn't new shares of stock at the current trading value...
 

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This makes sense since they need money to bridge from 2025 into 2026. Also we don’t know when R2 production starts in 2026 and it is likely 2027 before appreciable and profitable production there starts.
 

jjswan33

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Interesting. Market sure doesn't like it. I suppose if you know you will need to money maybe they get better terms now than in 2 years when interest rates are probably higher and they have less capital on hand.
 

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The thing that’s curious about this to me is the size. $1.3B buys them what, 3-4 months of runway?
 

Guy

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The thing that’s curious about this to me is the size. $1.3B buys them what, 3-4 months of runway?
True but I assume they will do a number of raises as the estimate I saw was needing around $4billion. Better to do that in bite sized pieces than one big issue.
 

mkg3

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Let me get this right. During the earnings call, just 7 days ago, question was asked about the liquidity status and need to raise more cash. To which Clare and RJ said that they had sufficient funds to get them through 2024 into 2025.

So what changed in the last week that they are now disclosing the corporate debt offering?

I already see class action law suit being worked by ambulance chasing attorneys...

Raises question about their whole conference call. This and the production rate difference between the official and "internal goal", which now effectively is the exception by all the analysts.

Like I'd said in another thread, that was the worst call I'd heard in a very long time so I shouldn't be surprised at this action now....
 

AdamsFan1983

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Let me get this right. During the earnings call, just 7 days ago, question was asked about the liquidity status and need to raise more cash. To which Clare and RJ said that they had sufficient funds to get them through 2024 into 2025.

So what changed in the last week that they are now disclosing the corporate debt offering?

I already see class action law suit being worked by ambulance chasing attorneys...

Raises question about their whole conference call. This and the production rate difference between the official and "internal goal", which now effectively is the exception by all the analysts.

Like I'd said in another thread, that was the worst call I'd heard in a very long time so I shouldn't be surprised at this action now....
Likely does not rise to being actionable, IMHO…. A lawsuit won’t get far. That said, It’s been evident for quite some time they would need to raise cash to develop the R2 and get the new factory open. Personally I’d rather see them go this route than a stock offering at current prices.
 

DuoRivians

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They don’t need the cash. But will they raise cash opportunistically? Yes.

Lawsuit claims are bullshit. Just stop.

The funds are likely to help invest in the Georgia plant. Money is fungible. So, think of it as Rivian has set aside money to invest in its Georgia plant.
 

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jjswan33

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Let me get this right. During the earnings call, just 7 days ago, question was asked about the liquidity status and need to raise more cash. To which Clare and RJ said that they had sufficient funds to get them through 2024 into 2025.

So what changed in the last week that they are now disclosing the corporate debt offering?

I already see class action law suit being worked by ambulance chasing attorneys...

Raises question about their whole conference call. This and the production rate difference between the official and "internal goal", which now effectively is the exception by all the analysts.

Like I'd said in another thread, that was the worst call I'd heard in a very long time so I shouldn't be surprised at this action now....
Not sure what you are talking about. Claire said they would need to raise capital and would look for market opportunities to do so.
 

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Let me get this right. During the earnings call, just 7 days ago, question was asked about the liquidity status and need to raise more cash. To which Clare and RJ said that they had sufficient funds to get them through 2024 into 2025.

So what changed in the last week that they are now disclosing the corporate debt offering?

I already see class action law suit being worked by ambulance chasing attorneys...

Raises question about their whole conference call. This and the production rate difference between the official and "internal goal", which now effectively is the exception by all the analysts.

Like I'd said in another thread, that was the worst call I'd heard in a very long time so I shouldn't be surprised at this action now....
IIRC, Tesla did pretty much the same thing back in the day. It isn't lawsuit material. But I agree with other posters that the size of this offering is kinda small. It is obvious they will need to take on more debt and/or sell more stock in the next three years.
 

NineElectrics

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Why raise money at low interest rates last year when you could raise money now, at higher interest rates? At this time last year, they were losing less money than they are now.

Rivian’s management has no idea what they are doing.
 

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Starting to wonder if I should have bought the f150 lightning instead...
 
 




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