Rivian secures $1 billion 10‑year term loan from Volkswagen joint‑venture
Rivian Automotive announced that Volkswagen Group provided a $1.0 billion, 10‑year term loan facility linked to their joint venture. The loan is split into two mirror agreements: one at a 5.93% fixed rate secured by all JV assets and another at a 6.03% fixed rate secured by Rivian’s 50% equity stake in the JV. The facility matures on 7 October 2036, with principal repayments beginning three years after funding.
Why it matters
The financing adds $1 billion of liquidity to Rivian without creating direct corporate debt, which the company says improves its balance‑sheet flexibility. Citigroup initiated coverage of Rivian with an $18 price target, indicating the loan could support a higher valuation.
Key facts
- 1The loan facility totals $1.0 billion. stocktitan.net
- 2It is a 10‑year term loan maturing on 7 October 2036. stocktitan.net
- 3Loan A carries a fixed interest rate of 5.93% and is secured by all JV assets. finance.yahoo.com
- 4Loan B carries a fixed interest rate of 6.03% and is secured only by Rivian SPV’s 50% equity stake in the JV. finance.yahoo.com
- 5Principal repayments of $100 million per year begin on the third anniversary of the funding date. stocktitan.net
- 6The facility is non‑recourse to Rivian and has no corporate guarantee. finance.yahoo.com
Summary written by AlphAI from 8 of 8 sources. Not investment advice. Figures are as stated by the linked sources.