Rivian Automotive (NASDAQ: RIVN) announced the funding of a $1.0 billion, 10-year term loan facility from Volkswagen Group on October 7, 2026, connected to the two companies' existing joint venture agreement.

The loan, structured as Loan B, carries a fixed interest rate of 6.03% per annum and matures on October 7, 2036. It is secured by the 50% equity interest in the joint venture held by Rivian JV SPC, LLC, a wholly-owned subsidiary of Rivian. The facility is non-recourse to Rivian Automotive.

The loan structure involves two agreements. Under Loan A, the joint venture — Rivian and Volkswagen Group Technologies, LLC — borrowed $1.0 billion from Volkswagen Specter LLC at a fixed rate of 5.93%. Those proceeds were used to fund Loan B, under which Rivian's subsidiary borrowed the same amount from the joint venture. Rivian's subsidiary then distributed the Loan B proceeds to the parent company for general corporate purposes.

Principal repayment begins on the third anniversary of the funding date, with $100.0 million due annually under each loan, paid in two installments of $50.0 million. The remaining balance is due at maturity. Interest payments begin on the second anniversary of the funding date on a semi-annual basis.

Loan B may be prepaid without penalty. Any prepayment of Loan B triggers a mandatory equivalent prepayment of Loan A. Neither loan carries a guarantee from Rivian or any other entity.

The joint venture between Rivian and Volkswagen Group was previously disclosed in a Form 8-K filed with the Securities and Exchange Commission on November 12, 2024.