Polestar Automotive Holding UK Limited (PSNY) had a pretty good Monday, with shares jumping double digits after announcing it's secured some serious financial backing. Two heavyweight banks are stepping in with fresh capital, and the company's parent is helping clean up the balance sheet.

The Deal Breakdown

Here's what's happening: Banco Bilbao Vizcaya Argentaria and NATIXIS are each putting in $150 million, totaling $300 million in equity investment. The banks are getting shares priced at $19.34 per Class A ADS, which is based on the three-month volume-weighted average price before they signed the definitive agreement.

There's an interesting wrinkle here. Both banks negotiated put option arrangements with a Geely Sweden Holdings subsidiary, giving them an exit opportunity after three years if certain return conditions are met. Think of it as a safety hatch. Once everything closes, neither institution will own more than 10% of Polestar's outstanding equity.

Geely Steps Up Too

In a separate but related move, Geely Sweden Holdings agreed to convert roughly $300 million of outstanding principal and interest that Polestar owes under a term loan into equity. That's significant because it reduces Polestar's debt burden while pumping more capital into the company. The conversion is pending regulatory approvals.

Combined, these transactions bring about $600 million in total capital support. Polestar says the deals should close by December 23, 2025, and are intended to improve liquidity and shore up the balance sheet as the electric vehicle maker navigates a competitive market.

Price Action: Polestar shares climbed 10.48% to $14.13 on Monday.