Workhorse (NASDAQ:WKHS) news for Monday includes $200 million in financing sending WKHS stock higher.
According to a news release, Workhorse has secured the $200 million from two institutional lenders. This comes from the lenders purchasing the company’s 4.0% Senior Secured Convertible Notes that are due in 2024.
These notes have a 4% interest rate but that can be dropped to 2.75% if it meets certain conditions. The notes mature in four years and have a starting conversion price of $36.14 per share. The company will pay interest on the notes in cash, as well as stock under specific circumstances.
Workhorse notes that it already has plans for the money from the transactions. It wants to use the funds to increase production volume, push new products to market, retire other more costly lending and for general purposes.
To go along with this deal, the company announced a second one that will lead to more financing. It has reached an agreement with its holder of 4.5% convertible notes. The holder will be exchanging all of these notes for shares of WKHS stock. The total value of this sits at $70 million and it will net the holder 5,034,212 shares of the stock.
Workhorse points out that it’s expecting both of these deals to close at the same time. So long as there are no issues, they will reach completion on Wednesday.
WKHS stock was up 3.8% as of Monday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.