Tuesday, April 30, 2019

Faraday Future Gets $225M In Bridge Loan

Los Angeles-based electric vehicle developer Faraday Future (FF) says it has received a new, $225M Senior Bridge Financing, from Birch Lake Fund Management, LP, ahead of a $1.25 billion equity capital raise it is running with Stifel Nicolaus & Co. According to the EV developer, the new funding will go towards supporting the completion and launch of its flagship vehicle, the FF 91 EV, as well as for development and launch of its mass market FF 81 vehicle in 2021, along with "support" of its vendor and supply chain. The new bridge funding comes after Faraday Future literally pulled a Hail Mary, by gaining the support of Chinese gaming products firm The9 in March. Faraday Future had laid off its employees and sold off its headquarters location prior to finding the new funding from The9. According to Faraday Future, the new bridge line from Birch Lake includes up to $150M in a "vendor trust" to support its supply chain. Faraday Future said the bridge financing from Birch Lake is split into a senior secured financing of $75 million and a vendor trust of up to $150 million. That "vendor trust" program will help increase the confidence of Faraday Future's key suppliers, allowing Faraday Future to pay all past due amounts for approximately 60 percent of FF's suppliers, so that it can support production launch of its FF 91.