Written by Cláudio Afonso | LinkedIn | X
Nikola shares plunged 30% in the first hours of Thursday’s trading session to a new record low of $2.16 after the company announced amendments to its financing structure in a new U.S. Securities and Exchange Commission (SEC).
In the new filing, the EV startup adjusted the terms of its convertible senior PIK (payment-in-kind) toggle notes to improve liquidity and increase operational flexibility.
The changes, detailed in Nikola’s Fourth Supplemental Indenture and First Supplemental Indenture filings, allow holders of the June 2022 and June 2023 convertible notes to convert their debt at a discounted rate of $3.116 per share, contingent on the company raising at least $65 million in gross proceeds from stock sales.
As of the time of writing, the stock has slightly recovered part of the intraday losses and is trading 26% lower at $2.32.
The modifications aim to give Nikola greater flexibility in managing its debt.
As background, Nikola had previously made a related adjustment on October 31 — the same day it reported its third-quarter earnings results — when it updated its Third Amended and Restated Equity Distribution Agreement with Citigroup Global Markets Inc.
The agreement allows Nikola to sell up to $237.6 million in common stock under an “at-the-market” offering, retaining flexibility in accessing capital as necessary. This sale authorization stems from the remaining portion of a prior $600 million offering and involves a 2.5% commission payable to Citigroup on gross sales proceeds.
Nikola said on Wednesday it has produced its 300th hydrogen-powered truck at its Coolidge, Arizona, manufacturing plant. In the first three quarters of the year, the EV maker sold 200 hydrogen fuel cell trucks.
On the last day of October, amid the release of the third quarter financial results, the EV startup reaffirmed its volume guidance of 300-350 hydrogen powered trucks by year-end indicating that it expects to produce between 100 and 150 vehicles this quarter.
Written by Cláudio Afonso | LinkedIn | X
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