Houlihan Lokey Advises Polestar

Houlihan Lokey is pleased to announce that Polestar has made an agreement with Volvo Cars to convert approximately $339 million of an outstanding $1 billion shareholder loan owed by Polestar to Volvo Cars into Polestar equity, as well as to amend the margin and to extend the maturity of the remaining approximately $661 million shareholder loan. The transaction was announced on March 31, 2026 . Houlihan Lokey provided board advisory services to Polestar in connection with the transaction.

The debt-to-equity conversion is expected to be completed in two tranches. The first tranche was completed on March 31, 2026, and the second tranche is expected to be completed during the second quarter. Following the conversions, Volvo Cars’ ownership in Polestar will remain at approximately 19.9%.

Furthermore, the maturity of the remaining approximately $661 million shareholder loan from Volvo Cars has been extended from December 2028 to December 2031.

The shareholder loan conversion and amendments announced strengthen Polestar’s balance sheet and extend Polestar’s debt maturity profile. Furthermore, Polestar and Volvo Cars intend to increase efficiencies by consolidating future Polestar 3 manufacturing in Charleston, South Carolina.

Polestar (NASDAQ:PSNY) is the Swedish electric performance car brand with a focus on design and innovation and the ambition to accelerate the change toward a sustainable future. Headquartered in Gothenburg, Sweden, its cars are available in 28 markets globally across North America, Europe, and the Asia-Pacific.

This transaction underscores Houlihan Lokey’s long-standing reputation and credentials as a leading board advisory services provider.

RELATED: Automotive, Truck, and Automotive Technologies, Portfolio Valuation and Fund Advisory, Financial and Valuation Advisory