JPMorgan Chase & Co. is leading a potential high-yield bond sale for electronic vehicle manufacturer Rivian Automotive Inc., partly to refinance its upcoming debt, according to people familiar with the transaction.
The company aims to raise as much as $2 billion, in part to replace existing bonds that mature in 2026, said the people, who were not authorized to discuss the matter publicly. JPMorgan is sounding out investors on the bond deal, with early pricing discussions around 10%, and a transaction could launch as soon as next week, said the people.
A JPMorgan representative declined to comment, while Rivian’s did not immediately respond to a request. The deal is still in the discussion phase and may not happen as planned, if at all, the people cautioned.
The US junk-bond market has shrugged off a spike in jobless claims to rally for three straight sessions. A dip in all-in yields has revived appetite for new deals lately after transactions grounded to a near halt in April.
The potential debt deal for Rivian, meanwhile, comes after the company said full-year deliveries will decline more sharply than anticipated just a month earlier. That is due in part to risks that US President Donald Trump’s trade war will weaken demand for electric vehicles. Rivian now expects to sell 40,000 to 46,000 battery-powered pickups, SUVs and delivery vans this year, the company said during its first-quarter results call.
President Trump’s trade policies, including a 25% levy on imported vehicles and ancillary parts, have prompted automakers around the world to revise their earnings expectations. Rivian Chief Executive Officer RJ Scaringe said tariffs could increase the company’s costs by a few thousands dollars per vehicle.
Rivian builds all of its cars in the US, and said a majority of its components — excluding battery cells — come from the US or comply with a free-trade agreement spanning North America.
The company raised approximately $1.25 billion in bonds back in 2021.
Shah, Weinman and Graf write for Bloomberg.
