L Catterton Asia Acquisition Corp (LCAA) Adds $750M to Lotus Deal
by Nicholas Alan Clayton on 2023-11-28 at 8:43am

L Catterton Asia (NASDAQ:LCAA) announced this morning that it has upsized the committed financing in its combination with EV sports car maker Lotus to $870 million in total.

The latest fuel injection comes in the form of $750 million in convertible notes and PIPE commitments under so far undisclosed terms. Counted purely as a PIPE, it would be the largest PIPE in a SPAC deal since CM Life Sciences III secured a $1.2 billion PIPE for its combination with EQRx, which closed in December 2021.

The investors in the upsize have not yet been disclosed, but L Catterton Asia included primarily strategic investors and existing partners in the first $122 million it secured for the PIPE. Altogether, PIPE investors are expected to own about 19% of the combined company at close.

The cash would also seem to help smooth over some early capex hurtles Lotus will need to clear following close. The company notched a net loss of -$377 million in the first half of 2023 as it continues to transition its manufacturing base to producing primarily new EV models rather than its legacy gas-powered luxury and performance vehicles.

Those costs included -$152 million spent on R&D during that period, down from the -$445 million it burned through for such purposes in the 2022, which could indicate its models are approaching greater readiness for the road.

The SPAC, meanwhile, has not yet set a date for a completion vote, but initially aimed for tying up the $5.4 billion transaction before the end of the year when it announced it in January.

 

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