EV maker Fisker (NYSE:FSR) plans to offer 0% senior unsecured convertible notes due 2025 with an aggregate principal amount of $170 million to an existing institutional investor. With an original discount of 12%, the move will result in $150 million in gross proceeds to the company.
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Further, under the purchase agreement, the company can offer additional notes with an aggregate principal amount of up to $623.33 million. The exercise can result in additional gross proceeds of nearly $550 million to the company.
The latest investment comes on top of a convertible notes offering of nearly $340 million in July by Fisker. The new dose of liquidity is expected to help the company ramp up deliveries, boost growth, and accelerate its vehicle programs.
Earlier this year, Fisker began delivering its Ocean SUV to customers in the U.S. and Europe. Heading into the fourth quarter, Fisker is aiming to accelerate Ocean SUV deliveries to nearly 300 per day in the U.S. It has delivered nearly 900 vehicles so far.
What Is the Price Target for FSR?
Overall, the Street has a consensus price target of $10.20 for Fisker, alongside a Moderate Buy consensus rating. This suggests a hefty 59.2% potential upside in the stock.
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