Rivian shares drop 7% after EV maker plans to offer convertible notes

Shares of Rivian Automotive Inc.
RIVN,
+9.22%
tanked more than 7% in the extended session Wednesday after the EV maker said it plans to offer, subject to market and other conditions, $1.5 billion worth of “green” convertible senior notes due in 2030. That would be in a private offering to “qualified institutional buyers,” Rivian said. The plan is also to give the buyers the option to purchase up to an additional $225 million. The notes will be senior, unsecured obligations of Rivian. Noteholders will have the right to convert their notes in certain circumstances and during specified periods, the company said. Shares of Rivian ended the regular trading day up 9.2%, and so far this year have gained around 28%, which compares with an advance of around 10% for the S&P 500 index
SPX,
+0.81%.
Rivian earlier this week reported third-quarter sales that were above Wall Street expectations.