Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter
Lucid Motors announced on Wednesday the entry into a Credit Agreement with an initial committed amount of up to $1.0 billion with a stated term of five years, maturing on June 9, 2027. Lucid’s CFO Sherry House said the credit will permit the electric vehicle maker to scale its business.
“We are pleased to complete this credit facility with an exceptional syndicate of banks, which illustrates our ability to access alternative forms of financing and provides us with further financial flexibility to scale our business,” said Sherry House, Lucid’s CFO. “We ended the first quarter of 2022 with close to $5.4 billion of cash on hand, which we expect will fund us well into 2023. We remain committed to scaling our business and are executing against our strategic objectives.” Â
According to the statement, Bank of America, N.A. is the administrative agent and swingline lender on the transaction and other lenders in the initial bank syndicate include Citigroup; Barclays Bank PLC; Goldman Sachs Bank USA; JPMorgan Chase Bank N.A.; BNP Paribas; Royal Bank of Canada, Capital Markets; HSBC Bank USA, N.A.; MUFG Bank, Ltd.; Sumitomo Mitsui Banking Corporation; and Wells Fargo Bank, N.A.
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Certain terms and covenants contained in the new ABL Credit Facility are summarized below:
- Provides revolving credit under the facility with an initial committed amount of up to $1.0 billion, with availability based on the value of certain eligible assets included in the borrowing base from time to time, and includes a $350.0 million sublimit for letters of credit and a $100.0 million sublimit for swingline loans.
- Provides for uncommitted incremental revolving commitments of up to an additional $500.0 million, plus certain other amounts, in each case subject to obtaining the commitments from lenders providing such incremental commitments.
- The ABL Credit Facility has a stated term of five years, maturing on June 9, 2027.
According to an image leaked on Saturday, Lucid Motors is getting ready to open a new showroom in Riyadh, Saudi Arabia’s capital and main financial hub. The company has currently 19 studios in the U.S., 2 in Canada (Vancouver and Toronto, and one in Germany (Munich).
On May 18, Lucid had hosted a ceremonial signing event to mark the agreements with the Saudi Arabia entities for the construction Lucid’s production factory with a capacity of 155,000 electric vehicles. The luxurious electric vehicle maker estimates that manufacturing plant in Saudi Arabia may result in up to $3.4 billion of value to Lucid over 15 years.
Recently, Lucid Motors unveiled a new digital platform called Lucid Financial Services through a strategic relationship with Bank of America. The platform offers a flexible financing process to the customers including lease and loan purchase options in the United States.
According to the company, the program is accessible to U.S. customers now taking deliveries of Lucid Air Grand Touring models and will also be available to customers taking delivery of Touring and Pure models later this year.
Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter