Just when we were convinced that troubled electric car startup Faraday Future had bitten the dust, it has been announced that the company has secured a $225 million bridge loan to keep it afloat.
In an announcement made this week, Faraday Future said it had secured $225 million in bridge financing, most of which it will use to pay back the millions which it owes to a number of different suppliers.
“Working alongside its new financial partner, Birch Lake Associates, LLC, a boutique merchant bank that invests intellectual and financial capital in undervalued high-potential companies, FF has created a multiple-stream bridge financing program to support the company pending completion of its announced equity-raising program,” the company said in a statement.
Faraday Future won’t go out without a fight
The $225 million figure is made up of $75 million of senior secured financing as well as a vendor trust valued at up to $150 million. This vendor trust program has been created with Birch Lake and will allow the company to pay all past due amounts for approximately 60 per cent of Faraday Future’s vendor base.
“FF’s larger suppliers and vendors have the opportunity to benefit in the vendor trust program by exchanging unsecured trade claims for trust interests that will hold a secured claim equal to all vendor claims in the trust and will include a repayment schedule to be completed during 2019,” the company’s statement continued.
Faraday Future asserts that its new bridge financing will allow it to complete a capital raise by the end of the year and this will allegedly allow the company to bring its long-promised FF91 electric crossover to the market. Faraday also has another vehicle on its radar, namely the mass-market FF 81, which it intends on launching in 2021. Faraday Future also wants to launch another model dubbed the V9.