EV major Fisker (NYSE: FSR) announced the sale of convertible debt worth $340 million, with the potential to double the sale of this debt to $680 million. The convertible notes, which will be due in 2025, will be convertible into Fisker’s Class A common stock at the investor’s option at the initial conversion price of $7.80, with the conversion price subject to certain limitations. This offering is expected to close on July 11.
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The company stated in its press release that it intends to use the net proceeds from this offering “for general corporate purposes, including working capital, an additional battery pack line to support growth in 2024 and beyond, sales and marketing, capital expenditures, and the development of future products.”
Overall, analysts are bearish about FSR stock, with a Moderate Sell consensus rating based on one Buy and three Sells.