Workhorse Group Inc. (WKHS): debt financing — Workhorse Group issues $9M secured convertible note with warrants; total capacity up to $139M

Workhorse Group Inc.

Initial $9M note at 12.5% OID yields ~$7.875M proceeds; warrant to buy 31,992,890 shares at $0.35.
Note bears 9% interest (18% on default), convertible at lower of $0.26 or 87.5% of VWAP (floor $0.05), 1-year maturity.
Company must seek stockholder approval within 75 days for >19.99% issuance and reverse stock split.
Existing $2.5M Green Senior Secured Convertible Note fully redeemed and all collateral released.
Up to $130M in additional notes with warrants (80% coverage) subject to conditions and investor/company options.

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 senior notes of aggregate principal amount of $139,000,000 with institutional investor at 9.0% per annum maturing one-year anniversary of their respective issuance dates.

Instrument: senior notes
Principal: aggregate principal amount of $139,000,000
Counterparty: institutional investor
Rate: 9.0% per annum
Maturity: one-year anniversary of their respective issuance dates
Event: incurrence

Exact text from the filing

one or more registered public offerings by the Company directly to the Investor (the “Offering”), (i) senior secured convertible notes for up to an aggregate principal amount of $139,000,000 (the “Notes”) that will be convertible into shares of the Company’s common stock, par value of $0.001 per share (the “Common Stock”) and (ii) warrants (the “Warrants”) to purchase

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Workhorse Group Inc. entered into Securities Purchase Agreement with an institutional investor valued at up to an aggregate principal amount of $139,000,000 (effective 2024-03-15).

Action: entry
Agreement: equity purchase
Counterparty: an institutional investor
Value: up to an aggregate principal amount of $139,000,000
Effective: 2024-03-15

Exact text from the filing

on March 15, Workhorse Group Inc. (the “Company”) entered into a securities purchase agreement (the “Securities Purchase Agreement”) with an institutional investor (the “Investor”) under which the Company agreed to issue and sell pursuant to the Company’s Indenture, dated December 27, 2023 between the Company and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), and a Second Supplemental Indenture to be entered into between the Company and the Trustee (collectively, the “Indenture”), in one or more registered public offerings by the Company directly to the Investor (the “Offering”), (i) senior secured convertible notes for up to an aggregate principal amount of $139,000,000 (the “Notes”)

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

Workhorse Group Inc. filing history →

Source: SEC EDGAR

accession 0001213900-24-023139

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