Lucid Motors and Churchill Capital IV announced that they have entered into a definitive merger agreement. CCIV and Lucid are combining at a transaction equity value of $11.75 billion. The merger had been rumored for weeks.
The deal values Lucid at an initial pro-forma equity value of approximately $24 billion at the PIPE offer price of $15 per share and will provide Lucid with approximately $4.4 billion in cash if no existing CCIV shares are redeemed at closing.
The transaction includes an approximately $2.1 billion cash contribution by the SPAC and a $2.5 billion fully committed PIPE with an investor lock-up provision that binds holders beyond the closing. The PIPE is priced at $15 per share (a 50% premium to the SPAC’s current net asset value) with an implied pro forma equity value of $24 billion. The transaction includes the largest ever SPAC-related common stock PIPE, the companies said.
The PIPE is anchored by the Public Investment Fund as well as funds and accounts managed by BlackRock, Fidelity Management & Research, Franklin Templeton, Neuberger Berman, Wellington Management and Winslow Capital Management.
Silicon Valley-basewd Lucid designs and manufactures luxury electric vehicles.
An investor call and live Q&A with Lucid CEO and CTO Peter Rawlinson, and Michael Klein, chairman and CEO of CCIV is planned today at 10:30 a.m. EST.
Videoconference link: Conference ID: 981 8408 5468
Toll-free dial-in number: +1 (669) 900-6833 Access code: 98184085468#
International: https://blueshirtgroup.zoom.us/u/acxS5SAc7Q
