Fisker's Production Pause and Fundraising
Fisker pauses production of electric vehicles, plans to raise $150 million in funding through convertible notes. The company is in talks with a large automaker for a potential transaction.
Key Points
- None of Fisker's Ocean SUVs were produced in January
- Manufacturing partner Magna made about 1,000 vehicles between Feb. 1 and March 15
- Senior secured convertible notes with a 10% original issue discount for gross proceeds of up to $150 million
- Hired restructuring advisers for possible bankruptcy filing
Pros
- Securing funding through convertible notes
- In talks with a large automaker for a potential transaction
Cons
- Paused production of electric vehicles for six weeks
- Weak demand for its cars