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Simpson Thacher Represents Managers in Lucid’s up to $600 Million At-The-Market Offering

11.10.22

The Firm recently represented BofA Securities, Inc., Barclays Capital Inc. and Citigroup Global Markets Inc. as managers (the “Managers”) in connection with Lucid Group, Inc.’s (“Lucid”) entering into an “at-the-market” program, under which Lucid may sell up to $600 million of Lucid common stock through the Managers pursuant to an equity distribution agreement. Contemporaneously, Lucid entered into a subscription agreement with its majority stockholder, Ayar Third Investment Company, an affiliate of the Public Investment Fund of the Kingdom of Saudi Arabia (“Ayar”), pursuant to which Ayar has agreed to purchase from Lucid up to $915 million of shares of its common stock in one or more private placements through at least March 31, 2023.

Lucid is a technology and automotive company founded in Silicon Valley in 2007 to develop the next generation of electric vehicle technologies. Lucid is a vertically-integrated company that focuses on in-house innovation and a “clean-sheet” approach to engineering and design. Lucid intends to use the net proceeds from the at-the-market program and the private placements for general corporate purposes, which may include, among other things, capital expenditures and working capital.

The Simpson Thacher team included Bill Brentani, Dan Webb, Karen Reyes, Barry Lau, Paul Clatterbuck and Katherine Nelson (Capital Markets); Jessica Cohen, Bobbie Burrows and Suyoung Jang (Intellectual Property); Tristan Brown and Allison Sutherland (Executive Compensation and Employee Benefits); Russell Light, Michael Mann and Ed Grais (Tax); Michael Isby (Environmental); Jeanne Annarumma (ERISA); and Jennie Getsin (Blue Sky).