Rivian Has Record Drop on Plans to Offer Convertible Debt (3)

Rivian Automotive Inc. shares fell the most ever after the electric-vehicle maker announced plans to issue $1.5 billion in convertible debt.

The Irvine, California-based company plans to offer green convertible senior notes due in 2030 as a private offering to qualified institutional buyers, according to a securities filing Wednesday. It granted the purchasers an option to buy an additional $225 million.

WATCH: Rivian will issue $1.5 billion in convertible debt and reported preliminary third-quarter revenue.

Source: Bloomberg

The stock sank 23% on Thursday, its biggest drop since Rivian’s initial public offering in November 2021. The plunge wiped out Rivian’s year-to-date gains.

The cash raise came “much earlier than we expected,” but in line with expectations, ...