Workhorse Upsizes Credit Facility to $40M, Issues 1.5M Warrants at $10 Strike

summarizeSummary

Workhorse Group amended its credit agreement to add $10 million in borrowing capacity and defer interest payments, issuing 1.5 million warrants at a $10 strike price. The company also extended rent deferrals on its manufacturing facility through January 2027.

check_boxKey Events · Financing and Capital Events · WKHS

• Credit Facility Increased to $40M

  Amendment No. 3 increases the cash flow credit commitment from $30 million to $40 million, providing an additional $10 million loan from Motive GM Holdings II LLC.

• Interest Deferred on $20M of Loans

  Interest on the $10 million from Amendment No. 2 and the new $10 million from Amendment No. 3 is deferred until the first interest payment date after January 31, 2027.

• 1.5M Warrants Issued at $10 Strike

  The company will issue warrants to purchase 1.5 million shares at $10.00 per share — 750,000 for each of the two $10 million loans. The warrants are exercisable immediately for five years.

• Rent Deferral Extended to January 2027

  The landlord agreed to defer rent payments from May 2026 through January 2027, with the entire deferred amount due in a lump sum by January 31, 2027.

auto_awesomeAnalysis · WKHS · Manufacturing

Workhorse Group increased its cash flow credit facility by $10 million to $40 million and deferred interest on $20 million of loans until after January 31, 2027. In exchange, the lender receives warrants to buy 1.5 million shares at $10.00 per share — a strike price more than triple the current $3.09 stock price, meaning the warrants are deeply out-of-the-money and unlikely to be exercised soon. The company also extended rent deferrals on its Indiana manufacturing facility through January 2027. This financing provides near-term liquidity but adds debt and potential future dilution, while the rent deferral signals continued cash constraints.