Shares of Lucid Group (NASDAQ: LCID) plunged 18% on Friday after the electric-vehicle (EV) upstart announced a sizable debt sale.
Lucid intends to offer $1.75 billion in convertible senior notes to institutional investors in a private sale. These investors will also have the opportunity to purchase an additional $262.5 million in notes within 13 days from the day the debt is first issued.
Debtholders will have the option to convert their notes into Lucid's stock at a rate that will be determined during the offering. The interest rate paid by the notes will also be specified at that time.
Source Fool.com