Rivian Automotive Inc (NASDAQ:RIVN) announced its US$1.5 billion green bonds will pay a coupon of 3.625%.
Rivian also granted the initial purchasers of these convertible notes an option to purchase up to an additional US$225 million of notes.
The 3.625% annual interest rate will be paid semi-annually and will mature on 15 October 2030, unless earlier repurchased, redeemed or converted.
Conversion will be done at an initial rate of 42.9290 shares of common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately US$23.29 per share of common stock.
The company said the initial conversion price represents a premium of approximately 27.5% over the closing price of $18.27 on Thursday, though it is a discount to the US$23.69 closing price on Wednesday, and the plus-US$25 levels seen in July and most of the second half of last year, not to mention the US$78 IPO price from 2021.
Green bonds are typically offered at lower interest rates to investors willing to take lower returns in exchange for supporting green projects.
Rivian, which sold the same amount in March, said the new green bond offering was to "de-risk" the launch of still-under-development R2, while maintaining "a conservative balance sheet".