Loan & DebtJul 1, 2026, 09:11 AM
Polestar Completes $640M Debt-to-Equity Conversions
AI Summary
Polestar Automotive Holding UK PLC announced the completion of approximately $640 million in debt-to-equity conversions by Geely Sweden Holdings AB and Volvo Cars since the beginning of 2026. This includes $300 million from Geely and $66 million from Snita (a Volvo Cars subsidiary) converted into Class A American Depositary Shares. Additionally, the company's Green Trade Finance Facility was increased by EUR 50 million to EUR 450 million, and the term of an outstanding subordinated loan from Geely was extended to June 30, 2027. These actions are expected to improve Polestar's capital structure and debt maturity profile.
Key Highlights
- Polestar completed $640 million in debt-to-equity conversions since early 2026.
- Geely converted $300 million of debt into 15,511,892 Class A ADS at $19.34 per share.
- Snita (Volvo Cars subsidiary) converted $66 million of debt into 3,864,300 Class A ADS.
- Total Volvo Cars debt converted to equity reached approximately $340 million.
- Remaining Volvo Cars shareholder loan of $660 million matures in December 2031.
- Geely subordinated term loan facility term extended to June 30, 2027.
- Green Trade Finance Facility increased by EUR 50 million to EUR 450 million.
Price Impact
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