Rivian Automotive Inc (NASDAQ:RIVN) continued to drop on Thursday afternoon after the electric truck maker announced a US$1.3 billion green convertible bond last night.
The senior notes will be due in 2030 and will be launched in a private offering to institutional buyers, who will be able to convert the bonds into cash or shares in the company.
Rivian said it also expects to offer the purchases the option to purchase an additional US$225 million principal amount of notes.
Green bonds are typically offered at lower interest rates to investors willing to take lower returns in exchange for supporting green projects.
Rivian sold the same amount in March to help with the launch of its new R2 vehicle.
A spokesperson said the new green bond offering was also to "de-risk" the launch of still-under-development R2, while maintaining "a conservative balance sheet".
Earlier this week the company said revenue for the third quarter is expected to come in at US$1.29-1.33 billion, up from just under US$540 million a year ago, which could beat the current Wall Street consensus of US$1.30 billion.
The shares, having risen 37% to US$23.69 in the year to date, were down 20.2% by midafternoon at around US$18.86.