Workhorse Closes $200 Million Financing from Institutional Lenders
CINCINNATI, Oct. 16, 2020 /PRNewswire/ -- Workhorse Group Inc. (Nasdaq: WKHS) ("Workhorse" or "the Company"), an American technology company focused on providing sustainable and cost-effective drone-integrated electric vehicles to the last-mile delivery sector, closed the previously announced $200 million financing with Antara Capital GP LLC as lead investor.
The Notes are convertible into common stock by the holders at $35.29 per share as adjusted prior to closing, mature in four years and bear interest at a rate of 4.0% per year, which rate may be reduced to 2.75% if the Company meets certain conditions. Interest is payable in quarterly installments and can be paid at the Company's option either in cash or, subject to certain conditions, shares of common stock.
"We are excited to close this transaction with our financial partners led by Antara Capital," said Workhorse CEO Duane Hughes. "The funds will allow an acceleration of production, an advancement of new products directly for the last-mile delivery market and an expansion our drone operations. We appreciate our financial partners'faith in us and their support in further solidifying our leadership and reach in the last-mile delivery segment."
When the proceeds of the financing are released from escrow, the Company will receive $194.5 million in net proceeds after payment of certain fees and expenses.
Goldman Sachs & Co. LLC served as exclusive financial advisor to Workhorse Group Inc. BTIG LLC acted as the financial advisor to the lenders.
About Workhorse Group Inc.
Workhorse Investor Relations Contact:
Matt Glover and Tom Colton
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SOURCE Workhorse Group Inc.