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Shares of electric vehicle startup Rivian Automotive Inc. RIVN were trending lower in premarket trading on Tuesday.
What Happened: The Irving, California-based company said it intends to offer $1.3 billion worth of green convertible, senior notes in a private placement to institutional investors. The notes would mature in March 2029.
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Rivian said the interest rate, initial conversion rate and other terms of the notes will be determined at the pricing of the offering.
The planned offering came on the heels of the company’s fourth-quarter earnings report released in late February, which showed revenue missing estimates and the 2023 production guidance trailing expectations.
The news could be perceived with caution by investors, who are jittery about the ramping up of production amid the supply challenges flagged by the company.
Price Action: In premarket trading on Tuesday, Rivian shares were down 6.01% at $16.10, according to Benzinga Pro data. The stock is already in the red for the year, down about 7% from the start of the year.
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Image and article originally from www.benzinga.com. Read the original article here.