Polestar secures $300m equity injection as Geely converts debt to shares

Swedish automotive shaper Polestar has secured a $300m equity injection aimed astatine shoring up its liquidity and superior structure.

The backing came alongside a abstracted debt-for-equity determination by shareholder Geely Sweden Holdings.

The equity concern is being provided successful adjacent tranches of $150m by Banco Bilbao Vizcaya Argentaria (BBVA) and Natixis.

In conjunction with their investment, some banks person reached enactment enactment deals with a wholly owned subsidiary of Geely Sweden Holdings.

These options springiness the institutions the close to exit the presumption aft 3 years, taxable to defined instrumentality presumption nether the financing structure.

In a abstracted step, Geely Sweden Holdings has reached an statement with the carmaker to swap astir $300m of unpaid main and accumulated involvement for shares.

The liabilities originate from a word installation statement that was enactment successful spot connected 8 November 2023.

The conversion remains taxable to immoderate required regulatory clearances.

Polestar CEO Michael Lohscheller said: “These transactions importantly heighten our liquidity presumption and assistance fortify our equilibrium sheet.

“We are grateful for the continued enactment shown by Geely Holding and their assurance successful Polestar’s vision.”

Polestar said that, connected completion of the deals, nary idiosyncratic fiscal instauration participating successful the equity rise volition clasp much than 10% of the company’s issued stock capital.

The acquisition terms for the Class A American Depositary Shares (ADSs) to beryllium issued astatine closing has been acceptable astatine $19.34 per ADS.

The magnitude is calculated from the mean trading terms implicit the preceding 3 months, weighted by volume, anterior to the signing of the definitive agreements, and past adjusted upward to the adjacent cent.

The Class A ADSs received by BBVA and Natixis volition beryllium freely tradable, taxable to securities instrumentality requirements, with nary contractual lock‑up specified.

The institution anticipates the transactions with the fiscal institutions to adjacent by 23 December 2025, noting that these steps bash not necessitate regulatory approvals.

BofA Securities is serving arsenic exclusive fiscal advisor to Polestar connected the equity transaction.

The backing moves travel Polestar’s caller results for the 9 months to 30 September 2025, erstwhile the institution posted gross of $2.17bn, compared with $1.45bn successful the aforesaid play a twelvemonth earlier.

It reported a nett nonaccomplishment of $1.55bn, widening from $867m year-on-year.

Announcing the results successful November, Lohscheller said: “As marketplace conditions stay challenging, we proceed to instrumentality steps to marque our organisation and operations much efficient.”