Fisker Drives Forward: Announces $170M Convertible Notes Offering for Expansion and Innovation

In a bold move reflective of its commitment to revolutionizing the electric vehicle (EV) landscape, Fisker(NYSE: FSR) has declared its intention to offer $170,000,000 in aggregate principal amount of 0% senior unsecured convertible notes due 2025. The recipient of this financial thrust is an existing institutional investor, marking a strategic partnership to further Fisker's mission.

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The convertible notes come with a unique financial structure, carrying an original issue discount of approximately 12%, which translates into gross proceeds of $150,000,000 for Fisker. This financial strategy, while atypical, underscores the innovative approach the company is taking not only in its electric vehicle technology but also in its financial maneuvers.

This announcement is not isolated but follows a trajectory of strategic financial decisions. In July 2023, Fisker embarked on a similar journey, offering $340,000,000 in aggregate principal amount in convertible notes to the same institutional investor. This underscores a continued collaborative effort between Fisker and its financial backer, signaling confidence and trust in Fisker's trajectory and goals.

#FiskerNews⚡️ Fisker secures an additional $150 million in growth capital from an existing investor, with an additional $550 million available. Read more here: https://t.co/YFWfxydLwd
#Fisker #EVs #CleanFutureForAll pic.twitter.com/MCvIeheJeN

— Fisker Inc. (@FiskerInc) September 29, 2023

In an intriguing turn, the Purchase Agreement Amendment opens the door for Fisker to potentially raise an additional $550,000,000 in gross proceeds. This flexibility in funding, now totaling up to $773,333,334, positions Fisker to capitalize on market opportunities and expedite its ambitious plans.

The infusion of capital is poised to play a pivotal role in propelling Fisker's strategic initiatives. Accelerating deliveries of the Fisker Ocean SUV, the company's flagship electric vehicle, is a top priority. Having initiated deliveries in both the US and Europe earlier this year, the Fisker Ocean SUV represents a significant stride in the electric vehicle market.

Furthermore, the financial injection will contribute to the expansion of Fisker's growth initiatives. The company has outlined a compelling vision for future products, including the Fisker PEAR crossover, the Fisker Alaska pickup truck, the Fisker Ronin super GT convertible, and the Fisker Force-E offroad package for the Ocean SUV. This diversified product roadmap positions Fisker as a key player in the evolving landscape of electric vehicles.

Key to this financial maneuver is TD Cowen, serving as the financial advisor to Fisker. The legal aspect is navigated by Orrick, Herrington & Sutcliffe LLP, acting as legal counsel to Fisker. Their involvement underlines the strategic and meticulous approach Fisker is adopting in these financial undertakings.

Fisker's journey in the electric vehicle sector has not been without its challenges, but with a robust financial strategy and a portfolio of innovative EVs, the company is demonstrating resilience and determination in navigating the competitive automotive landscape. As Fisker accelerates towards a sustainable future, this latest financial move positions it as a significant player to watch in the evolving realm of electric mobility.