Rivian announces $1.25 billion green notes offering

IRVINE, Calif. - Rivian Automotive, Inc. (NASDAQ:RIVN), a U.S.-based electric vehicle manufacturer with a market capitalization of $16.66 billion, today revealed plans for a $1.25 billion senior secured green notes offering, due in 2031. This private offering is contingent on market conditions and other factors. According to InvestingPro data, Rivian maintains a strong liquidity position with a current ratio of 3.73, indicating robust short-term financial health.

The proceeds from this offering are intended to redeem the company’s existing $1.25 billion floating rate senior secured notes due in 2026, along with covering related fees and expenses. The redemption of the 2026 Notes is not yet formally announced. With total debt of $4.87 billion, Rivian notably holds more cash than debt on its balance sheet, as highlighted by InvestingPro analysis.

Guarantees for the new notes will come from Rivian’s subsidiaries that also back its senior secured asset-based revolving credit facility. The notes and guarantees will be secured by the assets of Rivian and its guarantors, with certain exclusions and permitted liens. This includes a first-priority basis on Rivian New Horizon, LLC’s assets and a second-priority basis on certain assets currently securing the asset-based revolving credit facility.

The offering targets qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended, or non-U.S. persons in accordance with Regulation S under the same Act. The notes and guarantees will not be registered under the Securities Act and cannot be offered or sold in the U.S. without registration or an applicable exemption from registration requirements.

The sale of securities will be conducted through a private offering memorandum, avoiding any general solicitation or advertising.

Rivian, known for its innovative electric vehicles, aims to accelerate the transition to zero-emission transportation. The company operates with a direct-to-consumer and commercial sales model and provides a suite of services encompassing the vehicle’s lifecycle. With annual revenue reaching $5.01 billion, Rivian has shown significant growth potential. For deeper insights into Rivian’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which are available for over 1,400 US stocks.

This announcement contains forward-looking statements, including expectations about the notes offering and its anticipated use of proceeds. These statements are predictions and are subject to risks and uncertainties that could cause actual results to differ. Factors that may affect the offering and Rivian’s business are detailed in its filings with the Securities and Exchange Commission, including its recent Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

The information for this article is based on a press release statement. Rivian may adjust its offering plans and cannot guarantee the application of the proceeds as currently described.

In other recent news, Rivian Automotive Inc. is considering a high-yield bond sale to refinance its upcoming debt, potentially raising up to $2 billion. The interest rate discussed is around 10%, which has raised concerns about the cost of new debt for the company. UBS analysts have maintained a Neutral rating on Rivian, with a price target of $13, noting an increase in brand awareness but highlighting challenges such as the affordability of electric vehicles. Barclays has reiterated an Equalweight rating with a $14 target, emphasizing Rivian’s advancements in autonomous vehicles and the potential benefits from U.S. electric vehicle tax credits. BNP Paribas Exane has raised its price target to $20, praising Rivian’s gross profit improvement and its strategy with the R1 model.

RBC Capital Markets also increased its price target to $14, reflecting a revised revenue forecast and higher expected EV/Sales multiple. Rivian has adjusted its 2025 delivery guidance downward, now anticipating 40,000 to 46,000 vehicles, but increased its projected gross profit to $301 million due to anticipated regulatory credits. The company plans to raise its capital expenditure to further develop the R2 platform, expected to launch in 2026, and is working to secure U.S.-manufactured battery cells by 2027. Rivian’s liquidity was strong at $8.5 billion in the first quarter of 2025, with additional funding commitments from Volkswagen and a $6.6 billion loan from the Department of Energy.

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