Bank of America evidently enjoys working with the Lucid Group.
On Wednesday, the luxury electric vehicle manufacturer announced entry into a credit agreement with an initial committed amount of up to $1.0 billion with Bank of America serving as the administrative agent and swingline lender on the transaction.
According to a news release, other lenders in the initial bank syndicate for the credit facility include:
—Goldman Sachs Bank USA
—JPMorgan Chase Bank
—Royal Bank of Canada, Capital Markets
—HSBC Bank USA
—Sumitomo Mitsui Banking
—Wells Fargo Bank
“We are pleased to complete this credit facility with an exceptional syndicate of banks, which illustrates our ability to access alternative forms of financing and provides us with further financial flexibility to scale our business,” Lucid chief finance officer Sherry House said in the news release.
“We ended the first quarter of 2022 with close to $5.4 billion of cash on hand, which we expect will fund us well into 2023. We remain committed to scaling our business and are executing against our strategic objectives,” House continued.
Certain terms and covenants contained in the new credit facility include:
—Provides revolving credit under the facility with an initial committed amount of up to $1.0 billion, with availability based on the value of certain eligible assets included in the borrowing base from time to time, and includes a $350.0 million sublimit for letters of credit and a $100.0 million sublimit for swingline loans.
—Provides for uncommitted incremental revolving commitments of up to an additional $500.0 million, plus certain other amounts, in each case subject to obtaining the commitments from lenders providing such incremental commitments.
—The credit facility has a stated term of five years, maturing on June 9, 2027.
Previously, Bank of America pledged to be the institution behind Lucid Financial Services to help consumers secure financing for the company’s EVs.