Faraday Future said today it has raised about US$100 million in debt financing commitments led by Ares, along with existing lender Birch Lake and other lenders joining the debt financing round. Birch Lake affiliates remain the Majority Notes Purchaser and Collateral Agent on the secured financing facility.
According to Faraday Future, the new round of debt financing will be used to fund operations and accelerate the FF 91 program even further, including the start-up of manufacturing at FF’s production facility in Hanford, California.
The California-based EV startup plans to debut its FF 91 electric vehicle approximately 12 months after the close of its previously announced merger with Property Solutions Acquisition Corp (“PSAC”).
The preparation and start-up of the Hanford manufacturing facility will include new hiring, additional construction, and equipment installation and calibration to ensure the on-time production and delivery of FF 91. In addition, the funds will help further product testing, upgrade the Advanced Internet, Autonomous Driving and Intelligence (I.A.I) system, reboot supply chain efforts, build out the user ecosystem organization, and accelerate the FF China business operations strategy.
“We greatly appreciate the strong support that Ares and Birch Lake bring to FF,” said Carsten Breitfeld, Global CEO of FF. “This funding and subsequent merger with PSAC are instrumental steps to the realization of FF’s overall strategy and product fulfillment. This allows us to build upon our existing momentum and continue our production planning and deliver the FF 91 to consumers on time.”
Currently, FF 91 pre-production cars are undergoing final testing, including testing on electric propulsion system performance, range, and vehicle performance in various weather conditions around the United States. The FF 91 I.A.I system is similarly undergoing a series of tests and upgrades.
FF is also rapidly rolling out its business in China, following the recent announcement that Mr. Xuefeng (“Chris”) Chen joined FF as the CEO of FF China. Chris will help grow and steer FF’s China business, thereby solidifying FF’s unique US-China dual home market advantage.
FF announced a merger agreement with Property Solutions Acquisition Corp. “PSAC” (NASDAQ: PSAC) in January. The transaction is expected to close in Q2 of 2021 and after closing FF’s stock will begin trading on the Nasdaq under the ticker symbol “FFIE.” The I in “FFIE” stands for Intelligent and Internet, and the E stands for Ecosystem and Electric. FF is not just an EV company, but also a software-driven intelligent internet high-tech product and a value-sharing user ecosystem company.
The FF 91 features an industry-leading 1,050 horsepower, and a 130-kWh battery with submerged liquid cooling technology, the FF 91 achieves 0-60 mph in less than 2.4 seconds. Combined with a unique rear-seat intelligent Internet system, FF 91 delivers internet connectivity at high speed via its super mobile AP, achieves the industry’s largest reclining angle of 60 degrees through the zero-gravity seat, and provides a revolutionary user experience, designed to create a mobile, connected, intelligent, and luxurious third Internet living space and user mobility ecosystem platform.