Getaround, Inc. announced that it has entered into a subscription agreement with returning investor Mudrick Capital Management, L.P. for a private placement of a super priority non-convertible promissory note with an aggregate amount of up to $15,050,685 on September 8, 2023. The note accrues interest monthly beginning on October 15, 2023, at a rate of 8% per annum. Upon the occurrence, and during the continuation, of an event of default, an additional 2% will be added to the stated interest rate.

The note will mature on August 7, 2024 at which time the principal and accrued interest will become due, payable in cash, unless earlier redeemed or repurchased. The company may prepay the note at any time prior to the maturity date, and subject to the following exception, must prepay the balance of the note with (a) 50% of the net proceeds received prior to, and 100% of the net proceeds received on or after, January 31, 2024 from issuances of the company?s capital stock (excluding intra-company issuances) or issuances of company debt by the company or any of its subsidiaries, and (b) 100% of the net proceeds of any sale, or similar disposition, of the company or any of its subsidiaries. The mandatory prepayments set forth above do not apply to the first $10 million of net proceeds received by the company.

The note is a senior secured obligation of the company, guaranteed by certain of its subsidiaries and secured by collateral consisting of substantially all of the assets of the company and its subsidiary guarantors. Subject to limited exceptions, the note will rank senior to all outstanding and future indebtedness of the company.