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Nikola to Receive $200M Investment from Antara Capital Via Convertible Senior Notes -Breaking

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© Reuters. Antara Capital to Provide $200M in Investment for Nikola (NKLA), via Convertible Senior Notes

Nikola (NASDAQ:), a maker of electric trucks, today announced that Antara Capital LP, an institutional investor in the company, agreed to invest $200 million through the purchase Convertible Senior Notes.

Nikola Convertible Senior Notes was purchased by us. It is an acknowledgement of our recent successes in achieving both operational and strategic milestones. Mark Russell, Nikola CEO said that these include the shipment of the first serial production battery electric (BEV), trucks to dealers for customer deliveries and pilot testing of the fuel cell electric (FCEV), truck with selected customers as well as expanding our strategic partner network. Nikola believes that it is reaching an important point. We see customer momentum increasing which will require scaling our operations as well as investments in the hydrogen infrastructure.

If paid in cash or the Notes bear interest at an annual rate of 8.0%, the Company may choose to issue additional Notes at an increase of 11.0%.

Kim Brady, Nikola’s CFO, commented about the deal: “Including today’s $200 million investment, Nikola will have a cash and liquidity position totaling approximately $1.0 Billion as of March 31, 2022. This is the amount we plan to use to finance our growth plans. This investment will be the next step to consolidating our liquidity position, at very attractive terms. We also strengthen our long-term institutional investor base throughout the capital structure. This is indicative of Nikola’s growing maturity and increased appeal to investors.

By Michael Elkins

 

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