Rivian Receives Full Funding for $1.0 Billion Term Loan Facility from Volkswagen Group

Overview of Event

On October 7, 2026, Rivian Automotive, Inc. (NASDAQ: RIVN) announced the full funding of its committed $1.0 billion, 10-year term loan facility from Volkswagen Group. The borrowing was established under agreements originally entered into on November 12, 2024, in connection with the formation of their joint venture, Rivian and Volkswagen Group Technologies, LLC.

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Structure of the Financing

1. Loan A Agreement:

   • Borrower: Rivian and Volkswagen Group Technologies, LLC (the Joint Venture)
   • Lender: Volkswagen Specter LLC (VW SPV)
   • Principal: $1.0 billion
   • Interest Rate: 5.93% fixed per annum
   • Collateral: Secured by all assets of the Joint Venture

2. Loan B Agreement:

   • Borrower: Rivian JV SPC, LLC (Rivian SPV, a wholly owned subsidiary of Rivian)
   • Lender: The Joint Venture
   • Principal: $1.0 billion
   • Interest Rate: 6.03% fixed per annum
   • Collateral: Secured solely by Rivian SPV's 50% equity interest in the Joint Venture

3. Flow of Funds & Use of Proceeds:

   • Proceeds from Loan A were used concurrently by the Joint Venture to fund Loan B to Rivian SPV.
   • Rivian SPV subsequently made a distribution of the $1.0 billion proceeds to parent company Rivian Automotive, Inc., which plans to use the funds for general corporate purposes.

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Key Terms & Conditions

• Maturity: October 7, 2036 (10-year maturity).
• Amortization: Starting on the 3rd anniversary (October 2029), principal amortizes at $100.0 million per year ($50.0 million semi-annual installments), with the remainder due at maturity.
• Interest Payments: Semi-annual payments, with the initial payment deferred until the second anniversary of the funding date (October 2028).
• Prepayment Terms: Loan B may be prepaid without premium or penalty upon notice; prepayments trigger corresponding mandatory prepayments on Loan A.
• Guarantee & Recourse: Neither loan is guaranteed by Rivian Automotive, Inc. The sole recourse for default under Loan B is against Rivian SPV's equity interest in the JV, shielding Rivian's corporate entity from liability.

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Market Implications

This $1.0 billion non-recourse cash infusion strengthens Rivian's balance sheet and liquidity runway substantially without share dilution. The 6.03% fixed borrowing rate is attractive relative to current corporate debt market conditions and provides long-term capital stability as Rivian scales operations.