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Highlights

  • Luminar enters agreement to raise up to USD200 mn via convertible preferred stock over 18 months.
  • Initial issuance of USD 35 mn will fund corporate operations and debt reduction.
  • Additional tranches subject to specific conditions; conversion terms detailed in forthcoming regulatory filings.

 Luminar Technologies (NASDAQ: LAZR) is a global automotive technology company developing hardware and software for advanced vehicle safety and autonomy, working with partners like Volvo, Mercedes-Benz, NVIDIA, and Mobileye. Its technology debuted in the Volvo EX90, the first global production vehicle to feature it as standard.

The company has announced that it has signed a definitive agreement with investment entities YA II PN, Ltd., managed by Yorkville Advisors Global, and an additional accredited investor, to issue up to $200 million in convertible preferred stock. The funding will be conducted through registered direct offerings over a period of up to 18 months.

The arrangement includes an initial issuance of USD 35 mn in stated value of convertible preferred stock, with the potential for additional issuances in tranches of up to USD 35 mn. These tranches may occur no more frequently than every 60 days or 90 days if the previous tranche exceeded USD 25 mn. The purchase price for each tranche will be set at 96% of the stated value of the convertible preferred stock.

The proceeds from the first USD 35 mn tranche are intended for general corporate purposes, including the repayment of existing debt. Luminar has stated that the issuance of subsequent tranches is not guaranteed and will be subject to multiple conditions, including compliance with trading thresholds and stock volume requirements, as well as adherence to terms set out in the preferred stock agreement.

According to the agreement, the convertible preferred stock will be subordinate to Luminar’s existing first and second lien senior secured debt and any unsecured debt. Additionally, covenants applicable to the preferred stock are expected to reflect those included in Luminar’s current senior secured debt agreements.

The capital arrangement is described by Luminar as part of its broader financial strategy, following recent internal restructuring aimed at improving liquidity. The company emphasized that the transaction offers added financial flexibility but does not create a binding obligation to draw the full USD 200 mn.