Workhorse rallies after closing $200M institutional financing

Shares of Workhorse Group are rallying after the company announced the closing of the previously announced $200M financing with Antara Capital as lead investor. The notes are convertible into common stock by the holders at $35.29 per share as adjusted prior to closing, mature in four years and bear interest at a rate of 4.0% per year, which rate may be reduced to 2.75% if the company meets certain conditions. "We are excited to close this transaction with our financial partners led by Antara Capital," said Workhorse CEO Duane Hughes. "The funds will allow an acceleration of production, an advancement of new products directly for the last-mile delivery market and an expansion our drone operations. We appreciate our financial partners' faith in us and their support in further solidifying our leadership and reach in the last-mile delivery segment." The company will receive $194.5M in net proceeds after payment of fees and expenses. Shares of Workhorse Group are up 4%, or 94c, to $23.24 in morning trading.