Polestar secures $600 million through equity investment and debt conversion

Polestar (NASDAQ: PSNY) announced a $300 million equity investment from Banco Bilbao Vizcaya Argentaria and NATIXIS, with each financial institution contributing $150 million. The Swedish electric vehicle manufacturer also disclosed that Geely Sweden Holdings AB agreed to convert approximately $300 million of outstanding debt into equity.

The equity investment will be priced at $19.34 per Class A American Depositary Share, calculated as the volume-weighted average price over the three months preceding the agreement date. Both financial institutions entered into put option arrangements with a Geely subsidiary that provide an exit mechanism within three years with specified returns.

Following the transaction's completion, neither financial institution will own more than 10% of Polestar's outstanding equity. The purchased shares will not be subject to sale restrictions beyond applicable securities laws.

The debt conversion involves outstanding principal and interest under a Term Facility Agreement dated November 8, 2023, between Polestar and Geely Sweden Holdings AB. This conversion requires regulatory approvals before completion.

"These transactions significantly enhance our liquidity position and help strengthen our balance sheet," said Michael Lohscheller, Polestar CEO, in a statement.

The equity investment transaction is expected to close by December 23, 2025, as no regulatory approvals are required for this portion. BofA Securities is serving as Polestar's financial advisor for the transaction.

The announcements were made in a press release statement from the Gothenburg-based electric performance car manufacturer, which currently sells vehicles in 28 markets across North America, Europe, and Asia Pacific.

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