Fisker, an NYSE-listed EV manufacturer, has reported the offering of USD 340 million in convertible notes due 2025 to an investor, with an initial conversion price of USD 7.80/share and the potential to increase the total amount to USD 680 million.

The notes will have a 0% interest rate and an original issue discount of ~12%, resulting in USD 300 million in proceeds for Fisker. Additionally, Fisker has granted the investor the option to purchase an additional USD 226.6 million worth of notes within a six-month period starting one year after the offering's closing date. If the investor exercises this right in full, Fisker can require them to purchase an additional USD 113.3 million worth of notes.

The company intends to use the funds for general corporate purposes, including working capital, sales and marketing, capital expenditures, and the development of future products. This will also support the development of an additional battery pack line to support growth from 2024 onwards.

Analyst QuickTake: This offering of convertible debt comes following the company delivering its first 22 Fisker Ocean One launch edition SUVs to customers in the US in June 2023 . The company initially began production in November 2022 , following which it delivered its EV to European customers in May 2023.