Workhorse Secures Up to $100M Loan Facility

TL;DR

Workhorse just got a $100M lifeline from PIMCO to keep the lights on and build more EVs.

AI Summary

On July 18, 2024, Workhorse Group Inc. entered into a Material Definitive Agreement, specifically a loan agreement with an affiliate of PIMCO, for up to $100 million. This agreement creates a direct financial obligation for Workhorse Group Inc. and is intended to provide additional liquidity to support its operations and strategic initiatives.

Why It Matters

This significant financing provides Workhorse with crucial liquidity, potentially bolstering its operational capabilities and strategic growth plans in the electric vehicle sector.

Risk Assessment

Risk Level: medium — While the loan provides necessary capital, the company's operational and financial performance will determine its ability to repay and the overall impact of this financing.

Key Numbers

• $100M — Loan Facility (Maximum amount available to Workhorse Group Inc. from PIMCO affiliate.)

Key Players & Entities

• Workhorse Group Inc. (company) — Registrant
• PIMCO (company) — Lender's affiliate
• $100 million (dollar_amount) — Maximum loan amount
• July 18, 2024 (date) — Date of agreement

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value per share WKHS The Nasdaq
• $139,000,000 — up to an aggregate principal amount of $139,000,000 (the "Notes") that will be convertible
• $4,000,000 — ote in the original principal amount of $4,000,000 (the "Third Additional Note") and (ii)
• $22,285,714 — aggregate original principal amount of $22,285,714 (the "Prior Notes") and (ii) Warrants t
• $5,600,000 — on June 17, 2024). As of July 17, 2024, $5,600,000 aggregate principal amount remains outs
• $112,714,286 — ntemplates additional closings of up to $112,714,286 in aggregate principal amount of additi
• $3,500,000 — l issue discount of 12.5%, resulting in $3,500,000 of proceeds to the Company before fees
• $1.1783 — conversion price equal to the lower of $1.1783 (the "Reference Price") or (b) the grea
• $0.3708 — rence Price") or (b) the greater of (x) $0.3708 (the "Floor Price") and (y) 87.5% of th
• $1,500,000 — cal quarter in the amount of either (i) $1,500,000 if the sale leaseback transaction of Co
• $2.9260 — k under the Third Additional Warrant is $2.9260. Like the Prior Warrants, the Third Add

Filing Documents

• ea0209609-8k_workhorse.htm (8-K) — 42KB
• ea020960901ex10-1_work.htm (EX-10.1) — 77KB
• 0001213900-24-062309.txt ( ) — 310KB
• wkhs-20240718.xsd (EX-101.SCH) — 3KB
• wkhs-20240718_lab.xml (EX-101.LAB) — 33KB
• wkhs-20240718_pre.xml (EX-101.PRE) — 22KB
• ea0209609-8k_workhorse_htm.xml (XML) — 4KB

01

Item 1.01. Entry into a Material Definitive Agreement. Securities Purchase Agreement As previously disclosed, on March 15, 2024, Workhorse Group Inc. (the "Company") entered into a securities purchase agreement (the "Securities Purchase Agreement") with an institutional investor (the "Investor") under which the Company agreed to issue and sell, in one or more registered public offerings by the Company directly to the Investor, (i) senior secured convertible notes for up to an aggregate principal amount of $139,000,000 (the "Notes") that will be convertible into shares of the Company's common stock, par value of $0.001 per share (the "Common Stock") and (ii) warrants (the "Warrants") to purchase shares of Common Stock in multiple tranches over a period beginning on March 15, 2024. Pursuant to the Securities Purchase Agreement, on July 18, 2024, the Company issued and sold to the Investor a (i) Note in the original principal amount of $4,000,000 (the "Third Additional Note") and (ii) Warrant to purchase up to 2,715,777 shares of Common Stock (the "Third Additional Warrant"). Refer to the Company's Current Report on Form 8-K filed on March 15, 2024 for additional information related to the Securities Purchase Agreement, the Notes, and the Warrants. The Third Additional Note was issued pursuant to the Company's Indenture between the Company and U.S. Bank Trust Company, National Association, as trustee (the "Trustee"), dated December 27, 2023 (the "Base Indenture"), and a Fifth Supplemental Indenture, dated July 18, 2024, entered into between the Company and the Trustee (together with the Base Indenture, the "Indenture"). As previously disclosed, the Company has issued and sold to the Investor (i) Notes in aggregate original principal amount of $22,285,714 (the "Prior Notes") and (ii) Warrants to purchase up to 5,487,198 shares of Common Stock (the "Prior Warrants") pursuant to the Securities Purchase Agreement (following adjustment in connection with the Company's

Forward-Looking Statements

Forward-Looking Statements Certain materially from the Company's expectations. Additional factors that could cause actual results to differ materially from those stated or implied by the Company's forward-looking statements are disclosed in the Company's reports filed with the Securities and Exchange Commission.

01. Exhibits

Item 9.01. Exhibits. Exhibit No. Description 10.1 Fifth Supplemental Indenture. 104 Cover page from this Current Report on Form 8-K, formatted as Inline XBRL. 3

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. WORKHORSE GROUP INC. Date: July 18, 2024 By: /s/ James D. Harrington Name: James D. Harrington Title: General Counsel, Chief Compliance Officer and Secretary 4

View Full Filing

View this 8-K filing on SEC EDGAR