Further to our previous article, Rivian (RIVN.us) has given disappointing guidance and wants to raise more funds by issuing convertible notes.
Yesterday, the company issued a filing which gave preliminary Q3 sales at between $1.29bn and $1.33bn. FactSet suggests that analysts are looking for $1.31bn in revenue.
The company is also looking to raise funds by a private offering of R1.5bn of "green" convertible senior notes, due in 2030, to "qualified institutional buyers." The plan gives buyers an option to purchase an additional $224m in notes.
The notes are senior unsecured obligations. Moreover, noteholders will have the right to convert their notes to shares under certain circumstances and during specified periods.
Rivian was down close to 8% in premarket trading.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.