Polestar Automotive Holding UK Plc A (NASDAQ:PSNY) shares rose 4.1% in premarket trading on Monday after the company announced a $400 million equity investment structured through a special purpose vehicle.
The capital will be provided by Feathertop Funding Limited, a special purpose vehicle consolidated to the two financial institutions behind the commitment: Sumitomo Mitsui Banking Corporation and Standard Chartered Bank (Hong Kong) Limited. Each institution is contributing $200 million to the transaction.
Polestar said the deal is expected to close by February 5, 2026, and that no regulatory approvals are required for completion. The investment price has been set at $19.34 per Class A American Depositary Share - the same per-ADS price used in Polestar's December 2025 equity financing.
Under the agreement, both banks have entered into put option arrangements with a subsidiary of Geely Sweden Holdings AB, creating a potential exit path in three years that would provide those investors with certain returns. Polestar noted that the terms of these arrangements mirror the company's prior equity financing announced in December 2025.
Company disclosures state that after the transaction closes, neither financial institution will own more than 10% of Polestar's outstanding equity. The investors will not face any sale restrictions on the acquired shares beyond those imposed by applicable securities laws.
Polestar's chief executive, Michael Lohscheller, commented on the transaction, saying: "Following the new equity financing and the funding announcements in December, and with the support of Geely Holding, we continue to make progress on enhancing our liquidity position and strengthening our balance sheet. With a record year of retail sales behind us, we are fully focused on creating a stronger Polestar."
Bank of America Securities served as Polestar's exclusive financial advisor on the transaction.
Contextual notes - The funding arrangement is routed through a consolidated special purpose vehicle and involves contractual put options with a Geely subsidiary. The deal price per ADS is identical to December 2025 financing, and closing is expected by February 5, 2026 without the need for regulatory approvals. After closing, ownership stakes for the two institutions will remain below 10% of outstanding equity.