Faraday Future cuts $5M in convertible note obligations via amendments

Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) announced amendments to a convertible note agreement with an existing investor, resulting in a $5.0 million reduction in outstanding debt obligations, according to a company press release.

Under the amendments, FF will return $5.0 million in restricted cash held in a Deposit Account Control Agreement account with East West Bank. Following this repayment, the outstanding balance, including applicable premium and make-whole interest, will fall from approximately $10.88 million to approximately $5.88 million. The company said it will repay the remaining $5.88 million in cash within six months.

The remaining balance will be converted from a convertible note into a non-convertible debt obligation. The company said this restructuring reduces potential shareholder dilution by approximately 25.16%, calculated at a $5.00 per share conversion floor price.

"These Amendments will reduce the potential equity dilution, help optimize the Company's capital structure, and better protect shareholder value, further delivering on our commitment to capital value restoration," said Jerry Wang, Executive Chairman of FF.

Additional details are available in the company's Form 8-K filed with the SEC on Sept. 18, 2026.

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