Rivian drew the full $1 billion Volkswagen loan against its half of their software venture

Rivian Automotive told the Securities and Exchange Commission on October 7 that the committed $1.0 billion, 10-year term loan facility from Volkswagen Group, agreed when the two companies formed their joint venture, had been funded in full that day.

The structure runs through two agreements that Rivian first disclosed in November 2024, at the formation of the entity now named Rivian and Volkswagen Group Technologies, LLC. Under the first, the joint venture borrowed $1.0 billion from Volkswagen Specter LLC. Under the second, Rivian JV SPC, LLC — a wholly owned Rivian subsidiary that holds half the venture — borrowed $1.0 billion from the joint venture itself. The proceeds of the first loan funded the second, and the subsidiary distributed its proceeds to Rivian, which said it intends to use them for general corporate purposes.

Both loans mature on October 7, 2036. From the third anniversary, $100.0 million of principal is repaid each year on each loan in two installments of $50.0 million, with the balance due at maturity. Interest is fixed at 5.93 percent on the facility to the joint venture and 6.03 percent on the facility to Rivian’s subsidiary, paid semi-annually, with the first payment due at the second anniversary.

The security differs between the two. The first loan is secured by all assets of the joint venture. The second is secured only by the 50 percent equity interest in the venture held by Rivian’s subsidiary. Neither loan is guaranteed by Rivian or any other party, and the filing states that the sole recourse for a default on the second is to that collateral. Volkswagen Group is not an SEC reporting company and filed no corresponding US disclosure.