News
Debt Conversion · Equity Funding · Polestar · Volvo Cars
Volvo Cars converts USD 339 million of its USD 1 billion outstanding convertible loan to Polestar (Nasdaq: PSNY) into newly issued Class A shares, strengthening Polestar's balance sheet and extending the remaining USD 661 million loan's maturity to December 2031 from 2028.
The conversion price reflects a 5 percent discount to Polestar's 30-day volume-weighted average price. This initial conversion takes effect on March 31st, 2026, with a smaller second conversion expected in Q2 2026, contingent on Geely Sweden Holdings AB's conversion completion.
The conversions, disclosed by Volvo Car AB (publ), aim to bolster Polestar's financial position, which supports the successful continuation of the important operational and commercial partnership between the two companies. These transactions follow Polestar's previously announced USD 1 billion equity funding rounds since December 2025 and have no immediate short-term cash impact for Volvo Cars.
Third-party fairness opinions support the terms of these transactions.
