Fisker Raises $340M Via Debt, With Potential Option To Increase To $680M
Portfolio Pulse from Shivani Kumaresan
Fisker Inc (NYSE:FSR) has signed a securities purchase agreement to offer $340 million of 0% senior unsecured convertible notes due 2025 to an institutional investor, with the potential to increase the aggregate principal amount to $680 million. The company intends to use the net proceeds for general corporate purposes, including working capital and an additional battery pack line to support growth in 2024. Fisker is also canceling the remaining balance of its at-the-market equity program, which was approximately $23.4 million as of June 30, 2023.
July 10, 2023 | 2:17 pm
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Fisker's decision to offer $340M of 0% senior unsecured convertible notes and cancel its at-the-market equity program could impact its financial stability and growth prospects.
The offering of convertible notes will increase Fisker's debt, which could negatively impact its financial stability. However, the proceeds will be used for general corporate purposes, which could support its growth. The cancellation of its equity program could limit its ability to raise additional capital, potentially affecting its financial flexibility.
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