Aug 6, 2024
$422mm Existing Convertible Notes Exchanged + $100mm Senior Secured Notes
Exchange Transaction
Principal Amount Exchanged: ~$422mm of 1.25% convertible notes due 2026
New Amount Exchanged: ~$274mm Convertible Second Lien Senior Secured Notes due 2030
Discount Capture: 35% principal reduction
New Capital Raise
Description of New Notes: $100mm Floating Rate Senior Secured Notes due 2028
Matthews South Role: Capital Markets Advisor & Placement Agent
Principal Amount Exchanged: ~$422mm of 1.25% convertible notes due 2026
New Amount Exchanged: ~$274mm Convertible Second Lien Senior Secured Notes due 2030
Discount Capture: 35% principal reduction
New Capital Raise
Description of New Notes: $100mm Floating Rate Senior Secured Notes due 2028
Matthews South Role: Capital Markets Advisor & Placement Agent
Convertible Exchange + New Capital Raise
Transaction Summary
- On August 6, 2024, concurrent with Q2 earnings, Luminar Technologies announced it entered into private, separately negotiated transactions to reduce its debt, extend maturities, and raise new capital
- Holders of ~$422 million out of $625 million of its existing convertible notes due 2026 participated in the transaction
- Exchanged for ~$274 million (35% principal reduction) of convertible second lien secured notes due 2030 in two tranches
- Holders also provided Luminar with $100 million of new first lien financing
- Matthews South acted as capital markets advisor and placement agent for the transaction
Transaction Highlights
- The extension in maturity of Luminar’s debt from 2026 to 2030 and the $100 million of new capital provided the company with additional liquidity to help realize its growth and vision on its path to profitability
- Matthews South actively led investor dialogues with multiple investors to negotiate this highly complex transaction
This is the second capital markets transaction in which Matthews South has advised Luminar
Additional Deals for Luminar:
