Workhorse Group Inc. (WKHS): debt financing — Workhorse closes $20M convertible note offering with High Trail; warrant issued

Workhorse Group Inc.

Issued $20M senior secured convertible note at 12.5% OID, net proceeds ~$17.5M.
Note convertible at $0.5178/share; warrant to buy 25.6M shares at $0.4492.
Note matures Oct 2026; monthly cash redemption option starts Jan 1, 2024, up to 12.5% of principal.
Note classified as short-term liability; secured by substantially all assets and subsidiary guarantees.
Covenants require minimum cash: $25M by Dec 31, 2023; $13.5M by Jan 31, 2024; $20M by Feb 29, 2024.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Workhorse Group Inc. incurred convertible notes of $20,000,000 with High Trail Special Situations LLC maturing October 1, 2026.

Instrument: convertible notes
Principal: $20,000,000
Counterparty: High Trail Special Situations LLC
Maturity: October 1, 2026
Event: incurrence

Exact text from the filing

On the Closing Date the Company issued and sold in a registered public offering by the Company directly to the Investor (the “Offering”) a (i) green senior secured convertible note for the principal amount of $20,000,000 (the “Note”)

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Workhorse Group Inc. entered into Securities Purchase Agreement with High Trail Special Situations LLC valued at $20,000,000 principal amount of green senior secured convertible note (effective 2023-12-27).

Action: entry
Agreement: notes offering
Counterparty: High Trail Special Situations LLC
Value: $20,000,000 principal amount of green senior secured convertible note
Effective: 2023-12-27

Exact text from the filing

On December 27, 2023 (the “Closing Date”), Workhorse Group Inc. (the “Company”) consummated the transactions contemplated by the previously disclosed securities purchase agreement (the “Securities Purchase Agreement”) entered into with High Trail Special Situations LLC (the “Investor”) on December 12, 2023.

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10 debt financings filed in the last 30 days. Browse all debt financings →

Workhorse Group Inc. filing history →

Source: SEC EDGAR

accession 0001213900-23-099062

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